It was stated by Mike Novogratz that Bitcoin could reach $200,000 if the Federal Reserve were to adopt a highly dovish stance after a leadership change.
It was suggested by Galaxy Digital CEO Mike Novogratz that a significant rally in Bitcoin’s price could occur if the next US Federal Reserve chair nominee is exceptionally dovish.
The potential biggest bull catalyst for Bitcoin and the rest of crypto was stated by Novogratz in a Friday YouTube interview with Kyle Chasse.
The possibility of a “blow-off top” moment for Bitcoin was raised by Novogratz, who said that this could be a result of the Fed cutting rates when it shouldn’t be and a massive dove being put in charge.
“Can Bitcoin get to $200K? Of course it could…Because it becomes a whole new conversation if that happens.”
The steep cost of aggressive rate cuts, despite their bullish potential for crypto, was highlighted by Novogratz. “Do I want it to happen? No. Why? Because I kind of love America,” he said.
Novogratz Warns of Troubling Outlook for the US
The potential negative impact on America was pointed out by him, who added that the Fed might lose its independence.
A dovish stance from the Federal Reserve is generally anticipated to weaken the US dollar. However, it is often perceived as a bullish catalyst for Bitcoin and other risk assets, as traditional assets like bonds and term deposits become less profitable for investors.
A very decent chance that the FOMC looks and acts quite differently after Powell’s term expires in May 2026 was recently mentioned by Daleep Singh, vice chair and chief global economist at PGIM Fixed Income, echoing a similar sentiment to Novogratz.
The risks to the dollar are considered to be skewed to the downside on a cyclical basis, Singh added.
An “oh shit moment” could be triggered if Trump follows through on his pledge to appoint “a dove,” Novogratz warned.
The rocketing of gold and bitcoin was predicted by Novogratz.
That he was going to pick a dovish person was already assumed, but no one is quite sure, he added.
Novogratz says it may trigger an “oh shit moment”
The market is unlikely to mirror this potential outcome until an official announcement is made, according to Novogratz. He suggests that the market will not fully internalize Trump’s unconventional actions until they are actually carried out.
According to reports, Trump has reportedly narrowed his selection for the next Federal Reserve chair to three candidates. The individuals on his shortlist are White House economic adviser Kevin Hassett, Federal Reserve Governor Christopher Waller, and former Fed Governor Kevin Warsh.
At the Oval Office on September 6, Trump informed reporters that “you could say those are the top three.”
In September, a rate reduction of 25 basis points was delivered by the Fed, a maneuver that was largely expected by the market. However, Waller had been advocating for such a cut in July.
