Bitcoin Could Hit $200K if Trump Picks a “Massive Dove” to Lead the Fed – Novogratz
Bitcoin may see its most explosive rally yet if the next U.S. Federal Reserve chair takes an aggressively dovish stance, according to Galaxy Digital CEO Mike Novogratz.
In an interview with Kyle Chasse published Friday on YouTube, Novogratz said replacing current Fed chair Jerome Powell with a significantly more accommodative policymaker could ignite a sharp move higher in crypto markets.
“That’s the potential biggest bull catalyst for Bitcoin and the rest of crypto,” he said. Asked whether BTC could reach $200,000 in that scenario, Novogratz didn’t hesitate: “Of course it could… because it becomes a whole new conversation if that happens.”
Novogratz tied the thesis to a situation in which the Fed is “cutting when they shouldn’t be, and you put in a massive dove,” which he said could produce a “blow-off top” moment for Bitcoin.
Still, he made clear he isn’t cheering for that outcome: “Do I want it to happen? No. Why? Because I kind of love America.”
“Really Shitty for America,” but Bullish for BTC
Novogratz warned that an overly dovish Fed could lead to broader economic damage and potentially undermine the central bank’s independence.
“It would be really shitty for America,” he said, adding that the institution itself could face political pressure.
A more dovish Fed is typically associated with a weaker U.S. dollar and lower yields on traditional assets – both conditions that tend to boost demand for Bitcoin and other risk assets.
Daleep Singh, vice chair and chief global economist at PGIM Fixed Income, recently echoed the possibility of policy shifts following Powell’s departure in May 2026. “There’s a very decent chance that the FOMC looks and acts quite differently,” Singh said, adding that dollar risk is “skewed to the downside.”
Markets May Not Price It In Until It Happens
If Donald Trump follows through on installing a highly dovish Fed chair, Novogratz said the reaction could be swift and dramatic.
“Gold skyrockets… Bitcoin skyrockets,” he said. Still, he noted markets likely won’t react until the appointment is official:
“I don’t think the market will buy that Trump’s going to do the crazy, until he does the crazy.”
He suggested such a selection could trigger what he called an “oh shit moment” for investors.
Trump has reportedly narrowed his shortlist to three names:
- Kevin Hassett, White House economic adviser
- Christopher Waller, current Fed governor
- Kevin Warsh, former Fed governor
“You could say those are the top three,” Trump told reporters on Sept. 6.
The Fed delivered its first rate cut of the year in September – a 25 basis point move that was widely expected. Notably, Christopher Waller had already advocated for rate cuts back in July.
