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- Novogratz says Bitcoin could hit $200K if the next Fed Chair takes a dovish stance.
- BTC faces short-term pressure, trading near $109K after sharp weekly losses.
- A Trump Fed appointment may shift global markets, making Bitcoin the standout winner.
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Galaxy Digital CEO Mike Novogratz believes Bitcoin could be on the brink of a historic rally—if the next Federal Reserve Chair takes a dovish approach. Speaking in a recent interview, Novogratz argued that the appointment could become the “biggest bull catalyst for Bitcoin and the rest of crypto,” with the potential to send BTC as high as $200,000 in this cycle.
Fed Chair Decision Holds Heavy Weight
President Donald Trump has already floated several names to replace Jerome Powell, including Kevin Hassett, Kevin Warsh, and Chris Waller. Treasury Secretary Scott Bessent’s name also surfaced, though he has signaled no interest. Novogratz stressed that markets won’t fully price in expectations until the appointment is made. “I don’t think the market will buy that Trump’s going to do the crazy, until he does the crazy,” he said.
A dovish chair would likely prioritize lower rates and looser financial conditions, creating an environment favorable for both gold and Bitcoin. But Novogratz also warned this could come at a steep price for U.S. economic stability, calling it “really shitty for America.”
Bitcoin Faces Pressure Despite Bold Outlook
For now, Bitcoin is battling headwinds. The cryptocurrency is trading near $109,000 after slipping 6% over the past week. Powell’s recent remarks, which cooled expectations for additional rate cuts, added to the downward pressure. On top of that, liquidations have surged, with more than $1.1 billion wiped out this week—$272 million from Bitcoin alone.
Ethereum saw the largest single-week liquidations at $409 million, and traders are now eyeing a massive $17 billion Bitcoin options expiry on Deribit. The slightly bearish put-call ratio of 0.75 reflects lingering caution.
Also Read: Galaxy Digital Buys $306M in Solana, Driving Institutional Crypto Treasury Boom
BTC $200K: Pipe Dream or Imminent Reality?
Despite the volatility, Novogratz maintains confidence that a dovish Fed pivot could transform market sentiment overnight. His projection of Bitcoin reaching $200,000 underscores how much influence the central bank’s next move could have on digital assets. Whether that surge comes to pass will depend on one of the most politically sensitive appointments of the coming year.
Bitcoin remains under pressure in the short term, but the next Fed Chair could alter its trajectory dramatically. For Novogratz, the possibility of BTC hitting $200K is real—though it may come with broader economic costs that extend far beyond crypto.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
