Novogratz Predicts Fed Chair Selection Could Ignite Massive Bitcoin Rally

Wall Street's crypto bull sees monetary policy shift as crypto catalyst.

Policy Pivot Potential

Michael Novogratz argues the next Federal Reserve chair appointment could trigger Bitcoin's next major surge. The Galaxy Digital CEO suggests a dovish successor to Jerome Powell would create ideal conditions for digital asset appreciation.

Market Mechanics

Monetary policy changes directly impact cryptocurrency valuations. Lower interest rates typically drive capital toward alternative assets—and Bitcoin stands as the primary beneficiary. Novogratz's analysis points to historical patterns where loose monetary policy preceded crypto bull markets.

Institutional Implications

Banking veterans suddenly discovering blockchain technology after decades of dismissing digital assets—because nothing says financial innovation like playing catch-up with technology your interns explained to you last year.

The Fed's personnel decision could become crypto's most significant macroeconomic trigger yet.

Novogratz highlights the Fed’s impact on bitcoin

In a recent interview, Novogratz stated that if the next Fed chair adopts an aggressively dovish posture, Bitcoin could easily reach $200,000. He commented:

“Can bitcoin get to $200K? Of course it could…Because it becomes a whole new conversation if that happens.”

Novogratz cautioned, however, that such a scenario—where the Fed cuts rates more aggressively than warranted—would come with significant consequences for the U.S. economy. He added:

“Do I want it to happen? No. Why? Because I kind of love America.”

Dovish policy seen as bullish for bitcoin

A dovish stance from the Federal Reserve is generally expected to weaken the US dollar, making traditional assets like bonds less attractive and boosting demand for alternative assets such as Bitcoin.

At the time of publication, Bitcoin was trading NEAR $109,450, with a market capitalization of $2.17 trillion.

Daleep Singh, vice chair at PGIM Fixed Income, echoed Novogratz’s concerns, noting the Federal Open Market Committee (FOMC) could look and act “quite differently” after Jerome Powell’s term ends in 2026.

Singh stated:

“On a cyclical basis, I think the risks to the dollar are skewed to the downside.”

Trump’s shortlist for fed chair

Former President Donald TRUMP has reportedly narrowed his choices for the next Fed chair to Kevin Hassett, Christopher Waller, and Kevin Warsh.

Trump told reporters:

“You could say those are the top three.”

The Fed’s first rate cut of 25 basis points in September was considered largely anticipated, with Waller previously pushing for cuts earlier in the year.

Market may wait for confirmation

Novogratz warned that markets might not react until the new Fed chair is officially announced. He said:

“I don’t think the market will buy that Trump’s going to do the crazy, until he does the crazy.”

If a “massive dove” is selected, Novogratz predicts a sharp spike in both Gold and Bitcoin prices—potentially triggering what he called an “oh shit moment.”