Kevin O”Leary, well-known investor and entrepreneur, has recently expressed his thoughts on the United States Federal Reserve”s monetary policy and its implications for the cryptocurrency market, particularly Bitcoin.
O”Leary has diverged from prevailing market sentiments that predict significant interest rate cuts. He emphasizes that current inflation levels are too high, making any immediate easing of rates unlikely. He stated, “I don”t operate under the scenario of a Fed rate cut in December,” highlighting his skepticism regarding market expectations.
Despite the market”s prevailing optimism, which suggests a 89% probability of a rate cut by December according to CME FedWatch, O”Leary believes such a move would have minimal influence on Bitcoin. He pointed out that even if a rate cut were to occur, it “wouldn”t make a difference for Bitcoin.”
In O”Leary”s view, Bitcoin is likely to continue within a 5% range of its current price, suggesting stability rather than volatility driven by monetary policies alone. His remarks have sparked significant discussion among investors analyzing the relationship between interest rates and digital assets.
After a notable correction, Bitcoin has shown resilience, recovering from a dip near $83,000 and trading close to $93,700 in early trading on Wednesday. Analysts suggest that should it break through its current resistance, it may aim for targets around $95,000 to $96,000. The forthcoming sessions will likely see Bitcoin closely following macroeconomic trends and investor sentiment as they remain vigilant regarding the Federal Reserve”s actions and their potential repercussions for digital assets in the coming months.
