Galaxy Digital CEO Mike Novogratz stated that Bitcoin could experience a major rally in price if the new nominee for US Federal Reserve Chair to replace Jerome Powell was exceptionally dovish.
“That’s the potential biggest bull catalyst for Bitcoin and the rest of crypto,” Novogratz said Kyle Chasse was interviewed on YouTube Friday.
“Fed’s cutting when they shouldn’t be, and you put in a massive dove,” Novogratz added that this may lead to “your blow-off top” Bitcoin moment (BTC).
“Can Bitcoin get to $200K? Of course it could…Because it becomes a whole new conversation if that happens.”
Novogratz said that although aggressive rate cuts would likely be bullish to crypto, they would also come with a high price. “Do I want it to happen? No. Why? Because I kind of love America,” He said.
Novogratz believes it won’t be a positive scenario for the US
“It would be really shitty for America,” He said that the Fed could lose its independence.
The Federal Reserve’s dovish position is usually expected to weaken US dollars. It is often viewed as a catalyst that will boost Bitcoin and other risky assets as investors become less interested in traditional assets like bonds and term deposit.
Daleep Singh recently expressed a sentiment similar to that of Novogratz. He is the vice-chair and chief global economics at PGIM fixed income. said, “There’s a very decent chance that the FOMC looks and acts quite differently” After Powell’s tenure expires, in May 2026.
“On a cyclical basis, I think the risks to the dollar are skewed to the downside,” Singh, added
Novogratz states that it may trigger an “oh shit moment”
Novogratz said that Trump will not be able to fulfill his commitment to name a nominee if Trump does so. “a dove,” It could be triggered by 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 stated that the possible scenario will not be fully reflected on the market before the official announcement. “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 reportedly He has narrowed down his list of candidates for the Federal Reserve Chair to just three: former Fed Governor Kevin Warsh and Federal Reserve Governor Christopher Waller.
“You could say those are the top three,” Trump addressed reporters on September 6 in the Oval Office.
Fed has delivered its first rate cut of 25 basis points Waller was pushing for a cut in rates in July, which the market had anticipated.
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Source: cointelegraph.com
