Kevin O’Leary: December Fed Rate Cut Unlikely to Impact Bitcoin Prices

Kevin O’Leary comments on how persistent inflation may keep Federal Reserve policy tight, suggesting that Bitcoin’s price is expected to hover within approximately 5% of its current level.

Key Takeaways

Kevin O’Leary does not expect the Federal Reserve to lower interest rates in December.
He believes that Bitcoin will likely remain within 5% of its current price, regardless of Fed actions.
O’Leary cited ongoing inflationary pressures as a reason for the Fed's likely decision to keep rates steady.
Market sentiments regarding a rate cut have changed rapidly, with fluctuating probabilities over recent weeks.

Kevin O’Leary pointing to flat Bitcoin price chart after Fed decision

In a recent interview, entrepreneur and investor Kevin O’Leary expressed his views on the potential impacts of a Federal Reserve interest rate cut in December. He emphasizes that he does not anticipate a rate cut and believes that Bitcoin prices are unlikely to see significant fluctuations as a result of Fed decisions.

The Impact of Federal Reserve Rate Decisions on Bitcoin

American investor Kevin O’Leary has asserted that if the Federal Reserve decides to cut interest rates in December, the impact on Bitcoin prices will be minimal. He challenges the common belief that monetary policy heavily influences cryptocurrency values.

During a recent discussion, O’Leary emphasized, “I don’t think the Fed will cut in December. I’m not planning my investments that way.” He believes that Bitcoin will drift within a 5% range of its current price, regardless of the Fed's actions.

This outlook contrasts with market expectations, which predict an 88.1% chance of a rate cut in December, based on the CME’s FedWatch Tool. Earlier this month, those odds had dropped to 33% but have since risen again.

O’Leary points to persistent inflation as a reason that the Fed might opt to maintain current interest rates. U.S. annual inflation rose to 3% in September, representing the highest figure since January, according to government statistics. He stated, “The dual mandate is to ensure full employment while controlling inflation. Tariffs are beginning to impact costs.”

Bitcoin According to market data, Bitcoin has experienced a decline of 14% over the past month. Typically, cryptocurrency markets react to decisions regarding monetary policy; lower interest rates can lead to diminished returns on traditional savings, prompting investors to explore alternative assets.

Recently, views on the Fed’s policy have shifted dramatically. On November 19, the likelihood of a rate cut fell from 67% to 33%, but that changed quickly after New York Fed President John Williams suggested that rate cuts could happen soon without jeopardizing efforts to combat inflation.

Earlier this year, the Fed enacted two consecutive interest rate cuts, in September and November, which has led to expectations of further easing through 2025. Despite these developments, O’Leary believes that Bitcoin will remain stable in its trading range. “I don't foresee this negatively impacting Bitcoin,” he remarked, downplaying fears that an unexpected decision to keep rates steady could disrupt the cryptocurrency market.

"I prefer to invest in the infrastructure alongside the assets. If you’re going to own Bitcoin, you should also consider the entity that mines it. Bitzero has evolved significantly since my initial investment. It now operates as a power company, and its services aren't limited to a specific user." — Kevin O'Leary aka Mr. Wonderful (@kevinolearytv) December 2, 2025

As the Fed's December meeting approaches, discussions continue regarding its dual commitments to maintain price stability and ensure full employment.