Mike Novogratz, CEO of Galaxy Digital, mentioned that Bitcoin’s price might experience a significant surge if the next US Federal Reserve chair nominee to succeed Jerome Powell is notably dovish.
“That could be the most substantial bullish catalyst for Bitcoin and the broader crypto market,” Novogratz stated in an interview with Kyle Chasse, which was published on YouTube on Friday.
“If the Fed starts cutting rates at an inappropriate time and appoints a large dove,” Novogratz remarked, this may lead to a moment of “your blow-off top” for Bitcoin (BTC).
“Can Bitcoin reach $200K? Absolutely… The conversation changes entirely if that occurs.”
Novogratz pointed out that while the possibility of aggressive rate cuts would be positive for crypto, it would come with significant drawbacks. “Would I want this to happen? No. Why? Because I genuinely care for America,” he noted.
Novogratz warns of adverse outcomes for the US
“This would be detrimental for America,” he remarked, suggesting that the Fed might lose its independence.
A dovish approach by the Federal Reserve is generally expected to weaken the US dollar. However, it is often viewed as a positive signal for Bitcoin and other risk assets, as traditional investments like bonds and term deposits become less appealing to investors.
Reflecting a similar view to Novogratz, Daleep Singh, vice chair and chief global economist at PGIM Fixed Income, recently commented, “There’s a considerable likelihood that the FOMC will look and behave differently” after Powell’s term concludes in May 2026.
“Cyclical trends suggest that risks to the dollar are tipped to the downside,” Singh added.
Novogratz foresees an “oh shit moment”
Novogratz cautioned that if Trump fulfills his promise to appoint “a dove,” it could lead to an “oh shit moment.”
“Gold would soar… Bitcoin would soar,” Novogratz articulated.
“It was anticipated that he would choose someone dovish, but no one is entirely certain,” he continued.
Novogratz indicated that this potential scenario probably won’t be reflected in the market until the official announcement is made. “I doubt the market will believe that Trump will do the unpredictable until he actually does it,” Novogratz elaborated.
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Trump has allegedly narrowed his choices for the next Federal Reserve chair to three candidates: White House economic adviser Kevin Hassett, Federal Reserve Governor Christopher Waller, and former Fed Governor Kevin Warsh.
“You could say they are the top three,” Trump mentioned to reporters in the Oval Office on September 6.
The Fed implemented its first rate cut of 25 basis points in September, a move that was largely anticipated by the market; however, Waller had been advocating for a rate cut back in July.
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