Mike Novogratz Predicts Trump’s Fed Chair Pick Could Ignite Crypto ’Megacycle’
Wall Street's crypto oracle just dropped a bombshell prediction that could send digital asset portfolios into hyperspace.
The Fed's Next Move
Galaxy Digital CEO Mike Novogratz claims Trump's selection for Federal Reserve chairman might trigger what he calls a 'megacycle' for cryptocurrencies. The banking veteran-turned-blockchain-bull argues the right appointment could unleash unprecedented capital flows into digital assets.
Policy Meets Blockchain
Novogratz suggests a dovish Fed chair would create perfect conditions for crypto's mainstream explosion. Lower interest rates traditionally push investors toward alternative assets—and nothing alternatives harder than decentralized finance. The timing aligns with institutional adoption reaching critical mass.
Wall Street's Worst Nightmare
Traditional finance giants might soon watch digital assets eclipse their legacy systems. Banks still trying to figure out blockchain while crypto protocols process settlements in seconds. Maybe they should've spent less time on compliance theater and more on innovation.
Whether Novogratz's prediction hits or misses, one thing's clear: the establishment's grip on finance is slipping faster than a Bitcoin maximalist's patience with altcoins.
Novogratz sees political pressure influencing crypto’s future
Galaxy Digital Inc. CEO Mike Novogratz believes that the future of cryptocurrency markets could be directly shaped by U.S. politics, particularly President Donald Trump’s choice for the next Federal Reserve Chair.
He shared this in an interview aired Tuesday, where Novogratz argued that the independence of the central bank is under unprecedented strain and that its leadership could determine whether the next phase in crypto becomes a historic “megacycle.”
“Depending on who Trump picks as the next Fed governor, it could kick off a whole freaking mega cycle,” he said. Novogratz noted that the central bank faces “political pressure” to cut interest rates even as the stock market and Gold hover at record highs.
Novogratz suggested that a Chair who aligns with Trump’s administration could prioritize growth and liquidity over inflation control, which WOULD ignite a new wave of risk-taking across financial markets.
In the interview, Novogratz stated that the crypto industry has delivered substantial wealth in the past year, despite the industry’s shifts between bear and bull markets. He stated that markets “run out of steam” when monetary policy pivots, adding that in downturns, digital assets often trade back to parity or even at discounts.
What are the odds of a crypto mega cycle?
President Trump has repeatedly criticized current Fed Chair Jerome Powell for keeping interest rates “too high.” Powell’s term ends in May 2026, but speculation about an earlier replacement has fueled debate about the Fed’s independence.
President Trump has narrowed potential candidates to Kevin Hassett, the former National Economic Council director, Kevin Warsh, a former Fed governor, and Christopher Waller, who is currently serving on the Fed board.
The newly appointed Fed governor, Stephen Miran, has already called for steep rate cuts, warning that the current policy risks weakening the central bank’s employment mandate. Within the Federal Open Market Committee, other members argue that structural nonmonetary factors are driving down the neutral rate of interest.
Novogratz told interviewer Anthony Pompliano that the “political situation” makes it harder than ever to predict the top of the Bitcoin cycle. He also stated that artificial intelligence is an underestimated disruptor of the market, calling it the “great job destroyer.”
“There’s a lot more uncertainty in macro than I’ve ever seen, which makes calling the top of the cycle much more difficult,” he said.
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