Bitcoin
Galaxy Digital chief Mike Novogratz believes that once Donald Trump’s term ends, Bitcoin could surge if Donald Trump appointed the deep and extraordinary Federal Reserve Chairman.
In a recent interview, he said such a move would create the “big bull catalyst” of code, perhaps driving Bitcoin towards $200,000.
But Novograts warned that those that spark a gathering of digital assets would also spell out troubles in the US economy. A central bank that cuts rates too aggressively could weaken the dollar, compromise the Fed’s independence, causing what he called an “aaaaa shit moment” for the market. In that scenario, both gold and Bitcoin will surge.
Bitcoin is currently trading above $109,000, with analysts suggesting that policy change could soon play a bigger role in shaping the trajectory. PGIM economist Daleep Singh reflects similar concerns and notes that after Powell’s term ends in May 2026, the Fed’s makeup could change drastically after risks are skewed against the dollar.
Trump already shows that he wants a more stubborn attitude to the Fed and has named economic adviser Kevin Hassett as a list of potential alternative candidates for Governor Christopher Waller and former governor Kevin Warsh. The market primarily expects continuity, but Novograts believes that traders will not price risk entirely until the decision is official.
The timing of such changes may prove important. The Fed has already offered its first 25 base point rate reduction since the tightening cycle that began in 2022. Another wave of offensive mitigation could reduce yields across traditional safe shelters, creating a stronger narrative for investors to spin into Bitcoin and other risky assets.
Still, Novograts were clear about the trade-offs. The weakness of the dollar and the independent Fed may be fuelled by the speculative boom, but it could undermine the long-term health of the US economy. The tension is at the heart of his warning, between what benefits the crypto market and what harms America’s financial stability.
https://www.youtube.com/watch?v=lulkxe14S4
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over eight years of experience covering the crypto, blockchain and fintech industries, he is familiar with the complex and evolving world of digital assets. His insightful and thought-inducing articles give readers a clear grasp of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and detailed content. Follow his publications to keep you up to date with the most important trends and topics.