Galaxy Digital’s CEO, Mike Novogratz, indicated that Bitcoin’s price could experience a notable surge if the next nominee for the US Federal Reserve chair to succeed Jerome Powell adopts an exceptionally dovish stance.
“That could be the major bullish catalyst for Bitcoin and the entire cryptocurrency market,” Novogratz stated during an interview with Kyle Chasse published on YouTube on Friday.
“If the Fed cuts rates when they shouldn’t and appoints a clearly dovish figure,” Novogratz added, suggesting it might lead to “your blow-off top” moment for Bitcoin (BTC).
“Can Bitcoin reach $200K? Absolutely…It shifts the entire conversation if that occurs.”
He stressed that while such an aggressive rate-cutting scenario would be bullish for crypto, it would come at a significant cost. “Do I want it to happen? No. Why? Because I genuinely love America,” he remarked.
Novogratz warns it could adversely affect the US
“It would be really detrimental for America,” he commented, expressing concerns that the Fed might lose its independence.
A dovish approach from the Federal Reserve is typically expected to weaken the US dollar. However, it often acts as a bullish signal for Bitcoin and other risk assets, as traditional investments like bonds and term deposits become less appealing to investors.
In line with Novogratz’s views, Daleep Singh, vice chair and chief global economist at PGIM Fixed Income, recently noted, “There’s a very good chance that the FOMC behaves differently” once Powell’s term concludes in May 2026.
“Cyclical trends suggest that risks to the dollar are leaning towards the downside,” Singh remarked.
Novogratz indicates it may cause an “oh shit moment”
Novogratz cautioned that if Trump acts on his promise to appoint “a dove,” it could incite an “oh shit moment.”
“Gold will soar…Bitcoin will soar,” Novogratz asserted.
“The market has priced in his intention to select someone dovish, yet uncertainty remains,” he added.
He mentioned that any potential shifts likely won’t be visible in the market until an official announcement is made. “I doubt the market will believe Trump will take the unconventional path until he actually does,” Novogratz expressed.
Related: Bitcoin underperformance signals ‘distinct’ Q3 altseason: Grayscale
Trump has reportedly 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 those are the top three,” Trump remarked to reporters at the Oval Office on September 6.
In September, the Fed implemented its first rate cut of 25 basis points, a move largely anticipated by the market, although Waller had advocated for a cut in July.
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