NewsBTC
10 hour ago
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Kevin O’Leary Skeptical of December Fed Rate Cut Impact on Bitcoin

Kevin O’Leary's Perspective

  • Kevin O’Leary does not expect the US Federal Reserve to cut rates in December and believes this will not significantly affect Bitcoin's price.
  • He suggests Bitcoin may drift within 5% of its current level, citing persistent inflation as a reason for the Fed to hold off on rate cuts.

Market Expectations

  • The CME FedWatch Tool indicates an 89% probability of a December rate cut, influencing risk assets like cryptocurrencies.

Bitcoin Price Movement

  • Bitcoin rose from approximately $83,000 to around $93,700 following market sentiment shifts.
  • Support is noted at $90,000, with resistance around $92,500. A break above could lead to $94K–$95K.

Inflation Concerns

  • O’Leary cites rising consumer prices as a reason for the Fed's potential hesitation in cutting rates.
  • US consumer prices increased by 3% annually in September, the fastest since January.

Liquidity and Market Dynamics

  • The Fed injected over $13 billion into short-term funding, aiding liquidity in money markets and supporting crypto momentum.
  • Bullish momentum in crypto is partly attributed to this liquidity boost and a pause in Quantitative Tightening.

Current Trading Focus

  • Key levels for traders: $90,000 support and $92,500 resistance. A climb above $92,500 could target $94K–$95K.
  • Liquidity flows and official Fed signals will be critical in determining price movements.