Key Highlights Bitcoin could surge to $200,000 with a dovish Fed Chair appointment. Dovish policy may weaken the dollar but boost risky assets sharply. Market awaits official Fed Chair pick to confirm impact on crypto. Galaxy Digital CEO Mike Novogratz Sees Bitcoin Surging to $200,000 with New Fed Chair Mike Novogratz, CEO of Galaxy Digital, predicts a significant rise in Bitcoin’s price if the next US Federal Reserve Chairman, replacing Jerome Powell, adopts a loose monetary policy stance. “In the event of a dovish Fed Chair, this could be the most powerful bullish catalyst for Bitcoin and cryptocurrencies,” Novogratz said in an interview with Kyle Chasse published on YouTube on September 26. A Possible Rate Cut Could Trigger Explosive Growth Novogratz explained, “ The Fed is cutting rates when it shouldn't, and they’re appointing a dovish Fed Chair .” He warned this scenario might spark a “moment of explosive growth” for Bitcoin. When asked if Bitcoin could hit $200,000, Novogratz responded, “ Of course it could... it would be a whole new story if such an appointment came to pass .” Despite the bullish outlook, Novogratz expressed concerns: “Do I want that to happen? No. Why? Because I love America.” Risks of Loose Monetary Policy for the US Economy According to Novogratz, aggressive rate cuts and dovish monetary policy could harm the US economy and undermine Federal Reserve independence. A dovish Fed typically weakens the US dollar but benefits risky assets like Bitcoin as traditional investments lose appeal. Daleep Singh, vice chairman and chief global economist at PGIM Fixed Income, echoed these thoughts, stating, “There is a very high probability the Fed will act differently after Powell’s term ends in May 2026.” He added, “The dollar is likely to decline as the economic cycle progresses.” Market Reaction and Fed Chair Candidates Novogratz cautioned that appointing a dovish Fed Chair could shock markets: “Gold will soar… Bitcoin will soar.” He noted that while markets have partially priced in a dovish pick by President Trump, there is no absolute certainty until officially announced. Trump has narrowed the list of Fed Chair candidates to White House economic adviser Kevin Hassett, Fed Governor Christopher Waller, and former Fed Governor Kevin Warsh. Waller had advocated monetary easing earlier in July, and the Fed recently cut rates by 25 basis points, the first since 2020.
