Novogratz: The factor that could ignite the surge of Bitcoin is the choice of the successor to the Fed Chair.

Galaxy Digital CEO Mike Novogratz stated that the price of Bitcoin could skyrocket if the successor to the Chairman of the Federal Reserve America (Fed) Jerome Powell pursues an ultra-loose monetary policy.

"That could become the biggest catalyst to drive Bitcoin and the entire crypto market into a new bull cycle," Novogratz shared in an interview with Kyle Chasse, aired on YouTube on Friday.

He emphasized: "The Fed cut interest rates in a context where it shouldn't have, and then appointed a very dovish figure – that is precisely the scenario that could create a 'breakout moment' for Bitcoin," which is currently trading around 109,315 USD.

Daily BTC/USDT chart | Source: TradingViewWhen asked if Bitcoin could reach 200,000 USD, Novogratz affirmed: "It is entirely possible. If that scenario occurs, the entire discussion about cryptocurrency will move to a completely different level."

However, he also warned that a deep cut in interest rates by the Fed would come at a significant cost. "Do I want that to happen? The answer is no. Simply put, I really love America," Novogratz said.

Risks to America

"That would be a truly terrible scenario for America," Novogratz commented, while warning that the Federal Reserve (Fed) risks losing its independence.

A moderate stance from the Fed often weakens the USD, but it becomes a strong catalyst for the rise of Bitcoin as well as other risk assets. The reason is that, in the eyes of investors, bonds and term deposits will be less attractive.

In agreement with Novogratz, Daleep Singh – Vice President and Global Chief Economist of PGIM Fixed Income – also emphasized recently: "There is a very high likelihood that the FOMC will adjust its views and act in a completely different way" after Chairman Powell's term ends in May 2026.

"According to the cycle, I believe the risks to the USD are leaning more towards a depreciation scenario," Singh added.

"Stunning moment" if Trump appoints

Novogratz warns that if President Donald Trump keeps his promise to appoint a "dove" to the chair of the Fed, the market could witness a "stunning moment."

"Gold prices will explode... and Bitcoin will also surge significantly," he emphasized.

According to Novogratz, although investors have somewhat anticipated the possibility of Trump choosing a moderate figure, in reality, "no one can be sure." He believes that this scenario will only be clearly reflected after the official decision is announced.

"I don’t think the market will believe that Trump will do something bold until he actually acts," Novogratz added.

According to American media, President Donald Trump has narrowed the list of candidates for the position of Chairman of the Federal Reserve (Fed) to three notable figures: White House economic advisor Kevin Hassett, Fed Governor Christopher Waller, and former Fed Governor Kevin Warsh.

"I can confirm that these are the top three candidates," Trump stated to the press in the Oval Office on September 6th.

Notably, the Fed just conducted its first interest rate cut in September, reducing by 25 basis points – exactly as investors expected. However, Mr. Waller had even urged for a rate cut earlier, as early as July.

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