Mike Novogratz believes that the appointment of a too-soft Fed chairman would be the biggest bullish catalyst for Bitcoin, albeit a bad one for the US.
Novogratz: New Fed Chairman Could Send Bitcoin to $200K
Galaxy Digital CEO Mike Novogratz said that Bitcoin could skyrocket in price if Donald Trump appoints an “ultra-tadpole” to the post of Fed chairman. In his opinion, this could be “the biggest bullish catalyst for Bitcoin and the entire crypto market.”
“The Fed will start cutting rates when it shouldn’t be doing so, and if a real dove appears at the helm, we’ll get a crazy rally moment,” Novogratz said in an interview with Kyle Chasse.
He did not rule out that BTC could rise to $200,000 in such a scenario, but emphasized: “Do I want that? No. Because I love America.”
“It’s going to be bad for the US”
Novogratz explained that an overly lenient policy could cost the US the independence of the Fed, lead to a fall in the dollar and undermine confidence in the economy.
“It’s going to be really bad for America… but gold and Bitcoin will go up,” he added, warning of a possible “oh shit moment” if Trump follows through on his promise.
Who is Trump considering
Media reports that Trump’s shortlist of candidates includes:
- Christopher Waller, a current member of the Fed’s Board of Governors,
- Kevin Gassett, a White House economic adviser,
- Kevin Warsh, a former Fed chairman.
A final decision is expected before Jerome Powell’s term ends in May 2026.
Crypto Market Impact
Analysts believe that a weaker dollar and sharp rate cuts will make bonds less attractive, while risk assets like Bitcoin will benefit.
Novogratz concluded: “The market won’t believe that Trump is going to do something crazy until he actually does it.”
Related: Novogratz: New US laws will break the four-year cycle of the crypto market
