Galaxy Digital CEO Mike Novogratz said the very stubborn choice to lead the Federal Reserve could push Bitcoin into major gatherings despite warning that such a shift would pose serious costs to the US.
According to Novograts, the next Fed chair after Jerome Powell backs aggressive interest rate cuts could lead to weaker dollars and earning big bids for assets. He added that the outcome is great for cryptography, but it would not be good for the country.
Dovish Fed could send bitcoin higher
Novogratz announced on YouTube in an interview with Kyle Chasse that the Fed will begin cutting if it probably shouldn’t, and that if a strong, extraordinary chair is set up, investors can rush into assets like gold and Bitcoin.
Based on the report, he proposed a scenario in which the market chases higher prices in a short period of time, producing what traders call blow-off top. He also allowed Bitcoin to reach $200,000 under that set of terms.
https://www.youtube.com/watch?v=lulkxe14S4
The market won’t respond until the pick is real
President Donald Trump reports that he narrowed his list of nominees to three names: White House economic adviser Kevin Hassett, Federal Reserve Gov. Christopher Waller, and former Fed Gov. Kevin Wahsh.
Trump told reporters on September 6 that they were in the top three. Novograts said markets often await official action, so a rally he described may not start until a decision is announced and investors ensure policy changes.
Choosing a policy may reduce your dollar
Daleep Singh, vice-chairman and chief global economist of PGIM bonds, agreed that the Fed could take a completely different behaviour after Powell’s term ends in May 2026.
According to Singh, as policymakers become more and more people, risks to the dollar can be distorted into the negative aspects. Novograts warned that increasing the prices of risky assets could erode the Fed’s independence and create wider problems for the US economy.
Recent movements add context
The Fed implemented a 25 basis points first-rate reduction in September. This is the mostly expected mobile market. Reports show that Gov. Waller was already urging a cut in July, highlighting the range of vision within the system.
These past steps help explain why some investors are now talking about how leaning their policies are and how much they have a big impact on crypto.
Pixabay featured images, TradingView chart
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