Bitcoin’s ‘biggest bull catalyst’ may be the next Fed chair pick: Novogratz

Galaxy Digital CEO Mike Novogratz said Bitcoin’s price could see a significant rally if the next US Federal Reserve chair nominee to replace Jerome Powell is exceptionally dovish.

“That’s the potential biggest bull catalyst for Bitcoin and the rest of crypto,” Novogratz said in an interview with Kyle Chasse published to YouTube on Friday.

“Fed’s cutting when they shouldn’t be, and you put in a massive dove,” Novogratz said, adding that may lead to “your blow-off top” moment for Bitcoin (BTC).

“Can Bitcoin get to $200K? Of course it could…Because it becomes a whole new conversation if that happens.”

Novogratz emphasized that while the potential scenario of aggressive rate cutting would be bullish for crypto, it would come at a steep cost. “Do I want it to happen? No. Why? Because I kind of love America,” he said.

Novogratz says it will not be a good scenario for the US

“It would be really shitty for America,” he said, adding that it is possible the Fed is going to lose 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 such as bonds and term deposits become less lucrative to investors.

Bitcoin is trading at $109,450 at the time of publication. Source: CoinMarketCap

Echoing a similar sentiment to Novogratz, Daleep Singh, vice chair and chief global economist at PGIM Fixed Income, recently said, “There’s a very decent chance that the FOMC looks and acts quite differently” after Powell’s term expires in May 2026.

“On a cyclical basis, I think the risks to the dollar are skewed to the downside,” Singh added.

Novogratz says it may trigger an “oh shit moment”

Novogratz warned that if Trump follows through on his pledge to appoint “a dove,” it could trigger an “oh shit moment.”

“Gold skyrockets…Bitcoin skyrockets,” Novogratz said.

“It was priced in that he was going to pick somebody dovey, but no one is quite sure,” he added.

Novogratz said the potential scenario probably won’t be reflected in the market until the decision is officially announced. “I don’t think the market will buy that Trump’s going to do the crazy, until he does the crazy,” Novogratz said.

Related: Bitcoin underperformance signals ‘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 told reporters at the Oval Office on Sept. 6.

The Fed delivered its first rate cut of 25 basis points in September, a move largely anticipated by the market, but Waller had been urging for a rate cut in July.

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