If the incoming Fed chair lowers rates, Novogratz predicts a spike in Bitcoin.

According to Mike Novogratz, CEO of Galaxy Digital, if the next chair of the US Federal Reserve adopts a dovish attitude, Bitcoin may reach new heights.

According to Cointelegraph, Novogratz called such a move “the biggest bull catalyst for Bitcoin and the rest of crypto” in an interview with Kyle Chasse on Friday.

“A dovish appointee would probably accelerate rate cuts, which would create a favorable environment for risk assets,” he said. Could Bitcoin reach $200K? Novogratz stated, “Of course it could,” presenting it as a possible “blow-off top” situation. He acknowledged the potential benefits of cryptocurrency but warned that the U.S. economy would bear a heavy price for it. “Do I wish for it to occur? No. He said, “Because I kind of love America.”

Dollar weakness could fuel Bitcoin rally

Novogratz cautioned that a very dovish Fed would weaken the dollar and drive investors to gold and Bitcoin as alternatives. He referred to this situation as a “oh shit moment,” in which both assets might soar in value if investors start to doubt the U.S.’s monetary independence. Lower interest rates have historically redirected liquidity toward riskier assets by lessening the appeal of bonds and deposits.

This opinion was supported by Daleep Singh, vice chair and chief global economist at PGIM Fixed Income, who pointed out that dollar risks are “skewed to the downside.” After Powell’s term ends in May 2026, Singh also forecast a significant change at the Federal Open Market Committee (FOMC). The crucial turning point for Novogratz will be whether President Trump fulfills his promises to choose a dove.

Trump’s shortlist heightens market speculation

Novogratz said that until President Trump formally decides on the Fed’s leadership, the markets won’t completely respond. He stated, “No one is quite sure, but it was priced in that he was going to pick somebody dovey.” According to reports, Trump has reduced his shortlist to include former Fed Governor Kevin Warsh, Fed Governor Christopher Waller, and White House Economic Advisor Kevin Hassett.

In an indication of a possible shift toward looser policy, Waller had already advocated rate cuts earlier in July. In September, the Fed made its first 25-basis-point drop, which was broadly expected by markets but viewed as mild by some. A more assertive appointment, according to Novogratz, may pave the way for Bitcoin to test prices significantly higher than its present $109,611 level.

In the end, he presented the situation as a turning point: promising for cryptocurrency but dangerous for the stability of the US economy.

According to CryptoQuant, corporate treasuries’ Bitcoin purchases have decreased by 76% since the start of the summer, as we recently reported.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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