Galaxy Digital CEO Mike Novogratz has identified the upcoming Federal Reserve Chair appointment as a potential game-changer for Bitcoin, projecting that the cryptocurrency could reach $200,000 if a dovish candidate is selected. In a recent interview with Kyle Chasse, Novogratz called this decision "the biggest bull catalyst for Bitcoin and the rest of crypto", emphasizing that aggressive monetary easing could trigger a major rally.
Bitcoin currently trades near $109,000, down 6% weekly after Fed Chair Jerome Powell tempered rate cut expectations. This decline contributed to over $1.1 billion in crypto market liquidations, with Ethereum leading altcoin losses at $409 million and Bitcoin at $272 million. Traders are also watching a $17 billion Bitcoin options expiry on Deribit, where a put-call ratio of 0.75 indicates slight bearish sentiment.
President Trump has narrowed the Fed Chair shortlist to three candidates: Kevin Hassett, Chris Waller, and Kevin Warsh, with Waller previously advocating for rate cuts. Powell's term expires in May 2026, giving Trump time to decide. Novogratz warned that a dovish appointment, while bullish for crypto, could compromise Fed independence and harm the U.S. economy, calling it "really shitty for America". He believes markets won't price in the change until an official nomination, but confirmed dovish leadership could cause Bitcoin and gold to "skyrocket".
The Fed's first rate cut of 25 basis points in September met expectations, but analysts like Daleep Singh from PGIM Fixed Income suggest significant FOMC changes post-2026. Novogratz cautioned that accelerated easing might lead to a market "blow-off top" moment, realigning investor flows toward crypto.