American entrepreneur and investor Kevin O'Leary has rebutted speculation that the Federal Reserve will cut interest rates in December—a move that typically signals a favorable outlook for cryptocurrencies.
However, O'Leary does not expect the Fed's decision to maintain interest rates to negatively impact the price of Bitcoin (BTC).
"I actually don't think the Fed will cut rates in December," O'Leary, also known as "Mr. Wonderful," said in an interview with Cointelegraph on Tuesday, emphasizing that this "will not affect Bitcoin."
"I wouldn't invest that way. I wouldn't invest based on the assumption that the Fed will cut rates. So I just don't see it. I think there are many reasons they might not cut rates," O'Leary said.
O'Leary pointed out that "there is a lot of inflation in the system." The annual inflation rate rose to 3% in September, the highest level since January.
"This is a dual mandate: full employment and inflation. So tariffs are starting to take effect, and input costs are rising," O'Leary said. Despite these concerns, according to the Chicago Mercantile Exchange (CME) FedWatch tool, market participants believe there is an 89.2% probability that the Fed will cut rates in December.
Cryptocurrency traders typically view Fed rate cuts as a positive for riskier assets like cryptocurrencies, as investors tend to shift from less profitable bonds and time deposits to other assets.
However, some are concerned that an unexpected Fed rate decision could negatively impact Bitcoin prices and the broader cryptocurrency market.
Nonetheless, O'Leary does not expect this to happen.
O'Leary stated that Bitcoin has found its "current level," and he predicts its price will not drop much lower. "I think it will fluctuate within 5% up or down from the current price, but I don't see many upward catalysts," O'Leary said.
According to CoinMarketCap, Bitcoin is currently trading at $91,440.
Just a few weeks ago, market expectations for a rate cut in December were far less optimistic.
On November 19, the probability of a rate cut at the December meeting plummeted to 33%, while just a few weeks earlier, in the first week of November, investors estimated the probability of a December rate cut at around 67%.
However, just a few days later, on November 21, after New York Fed President John Williams made dovish comments, the probability nearly doubled to 69.40%. Williams stated that the Fed could "cut rates in the short term" without jeopardizing its inflation targets.
Bloomberg analyst Joe Weisenthal noted that this was the reason for the "significant increase" in probability.
After the first rate cut in September 2025 and another in November, the market widely expects the Fed to continue easing policy before the end of the year.
Related: Grayscale: Bitcoin (BTC) will end its four-year cycle and break to new highs in 2026
Original article: “Kevin O'Leary: The likelihood of a Fed rate cut in December is low, but Bitcoin (BTC) will be fine”
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