Fed Cut Doesn’t Scare Bitcoin, Which Holds Its Ground—Investor

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Kevin O’Leary pushed back on what many traders are betting on, saying he does not expect the US Federal Reserve to cut rates in December and that such a move would not rock Bitcoin’s price.

The well-known investor/entrepreneur said he is not investing as if the Fed will ease policy, and he thinks Bitcoin will likely drift within 5% of its current level.

Fed Cut Odds Skyrocketing

According to the CME FedWatch Tool, markets are now pricing in an 89% chance of a December rate cut, a big swing from just weeks earlier when odds were far lower. This shift in expectations has been a main driver of recent moves in risk assets, including crypto.

Bitcoin Reacts To Shift In Sentiment

Based on reports from market trackers, Bitcoin climbed after a recent dip, recovering from a low near $83,000 to trade around $93,700 in early trading sessions. Coingecko listed the price roughly in the $92,700–$92,800 band during morning trade.

Traders point to support at $90,000 and resistance near $92,500, and some desk notes say a clean break above that could open a run toward $94K–$95K.

Why O’Leary Is Skeptical

O’Leary has flagged higher prices in the economy and sticky input costs as reasons the Fed might hold off. Reports show US consumer prices rose at a 3% annual rate in September, the fastest since January, a datapoint he cited to argue inflation still matters. The inflation numbers are being watched closely by policymakers weighing the trade-off between jobs and prices.


Liquidity Moves Add Fuel

Reports have disclosed that the Fed quietly put more than $13 billion of liquidity into short-term funding, a move some analysts say has helped restore liquidity in money markets and supported risk assets.

That liquidity boost, together with the pause in Quantitative Tightening, has been flagged by quant desks as one reason bullish momentum returned to crypto.

Market Reaction

O’Leary’s take is at odds with the market odds and with several analysts who see easier monetary policy as a tailwind for assets like Bitcoin. He is not alone in warning against reading too much into a single Fed decision, but many traders have already positioned for easing and that positioning has moved prices.

What Traders Are Watching Now

Traders say $90,000 is the key line for buyers, while $92,500 is the line sellers must yield for a higher move. A clean climb above $92,500 could point toward $94K and $95K, according to market desk notes. Liquidity flows and official Fed signals this week will likely determine whether those levels hold.

Featured image from Unsplash, chart from TradingView

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