Market eyes Federal Reserve leadership shift as potential game-changer for crypto
Galaxy Digital CEO Mike Novogratz has described the upcoming decision on the next US Federal Reserve chair as the “biggest bull catalyst” for Bitcoin, suggesting the world’s largest cryptocurrency could climb to $200,000 under a highly dovish central bank.
Fed policy seen as pivotal for Bitcoin’s future
In an interview this week, Novogratz said a leadership change at the Fed that results in “a massive dove” could spark explosive upside for digital assets. “Can Bitcoin get to $200K? Of course it could,” he noted, adding that ultra-loose monetary policy would reshape the conversation around crypto.
However, he cautioned that while such a scenario may be bullish for investors, it could be damaging for the United States. “Do I want it to happen? No… because I kind of love America. It would be really bad for the country,” he explained, warning that the Fed could lose its independence.
Dollar risk, gold, and crypto correlations
A dovish Fed stance typically weakens the US dollar, making Bitcoin and gold more attractive as alternative assets. Novogratz predicted that if aggressive rate cuts were introduced, “gold skyrockets… Bitcoin skyrockets.”
Other experts share the view that the Fed’s outlook could redefine global markets. Daleep Singh, chief global economist at PGIM Fixed Income, recently said there’s a “very decent chance the FOMC looks and acts quite differently” after Jerome Powell’s term ends in 2026.
Trump’s shortlist heightens speculation
Former President Donald Trump has reportedly narrowed the shortlist for the next Fed chair to Kevin Hassett, Christopher Waller, and Kevin Warsh. Markets are closely watching these names as signals of how policy may evolve.
With Bitcoin trading near $109,500, Novogratz argued that the market won’t fully react until the nomination is official. “I don’t think the market will buy that Trump’s going to do the crazy, until he does the crazy,” he said.
For crypto investors, the Fed’s next move may mark a turning point — one that could unleash the next parabolic Bitcoin rally.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.