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Galaxy Digital CEO Mike Novogratz mentioned that Bitcoin’s value could experience a notable surge if the forthcoming US Federal Reserve chair nominee to succeed Jerome Powell is highly dovish.
“That’s potentially the largest bullish catalyst for Bitcoin and the remainder of crypto,” Novogratz stated during a conversation with Kyle Chasse released on YouTube on Friday.
“The Fed is cutting when they ought not to, and you introduce a significant dove,” Novogratz expressed, suggesting that may result in “your blow-off top” moment for Bitcoin (BTC).
“Can Bitcoin reach $200K? Absolutely it could…Because it ignites an entirely new discussion if that occurs.”
Novogratz underscored that while the prospective scenario of aggressive rate cuts would be favorable for crypto, it would indeed bear significant repercussions. “Do I wish for it to happen? No. Why? Because I genuinely care for America,” he remarked.
Novogratz states it won’t bode well for the US
“It would be tremendously detrimental for America,” he mentioned, adding that the Fed might potentially lose its autonomy.
A dovish approach from the Federal Reserve is generally expected to devalue the US dollar. Nonetheless, it is frequently regarded as a bullish trigger for Bitcoin and other high-risk assets, as conventional assets like bonds and fixed deposits become less attractive to investors.
Resonating a similar viewpoint to Novogratz, Daleep Singh, vice chair and chief global economist at PGIM Fixed Income, recently mentioned, “There’s a significant likelihood that the FOMC will behave quite differently” following Powell’s term conclusion in May 2026.
“Cyclical trends suggest that the risks to the dollar skew towards the downside,” Singh added.
Novogratz mentions it might induce an “oh shit moment”
Novogratz cautioned that should Trump fulfill his commitment to appoint “a dove,” it could induce an “oh shit moment.”
“Gold soars…Bitcoin skyrockets,” Novogratz expressed.
“It was accounted for that he was going to select someone dovish, but no one is entirely certain,” he added.
Novogratz conveyed that this potential scenario likely won’t be reflected in the market until the announcement is officially made. “I don’t believe the market will trust that Trump’s going to do the unexpected until he actually does the unexpected,” Novogratz noted.
Related: Bitcoin’s underperformance indicates ‘distinct’ Q3 altseason: Grayscale
Trump has reportedly narrowed his shortlist 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 informed reporters at the Oval Office on Sept. 6.
The Fed delivered its initial rate cut of 25 basis points in September, a maneuver largely forecasted by the market, although Waller had been advocating for a rate cut in July.
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