Mike Novogratz, the CEO of Galaxy Digital, stated that bitcoin could experience a major rally if the next U.S. Federal Reserve chair chosen to replace Jerome Powell takes a strongly dovish approach.

In an interview with Kyle Chasse, he described this possibility as the biggest bullish trigger for bitcoin and the broader crypto industry. He said that when the Fed cuts rates at the wrong time and brings in a highly dovish leader, it could create a blow-off top moment for bitcoin. He added that bitcoin reaching $200,000 is entirely possible because such a shift would change the entire discussion around bitcoin and digital assets.

Novogratz mentioned that although this scenario could be very favorable for bitcoin and crypto, it would involve serious consequences. He said he does not actually hope for it to occur because his concern for America outweighs the excitement around bitcoin. He warned that it could be very damaging for the country and that the Federal Reserve might lose its independence in the process. A dovish approach from the Fed is typically expected to weaken the U.S. dollar, but investors often view it as a positive driver for bitcoin and other risk assets, since traditional investments like bonds and term deposits would become less appealing.

At the time of reporting, bitcoin was trading around $109,450. Daleep Singh, vice chair and chief global economist at PGIM Fixed Income, expressed a viewpoint similar to Novogratz. He said that after Powell’s term ends in May 2026, the FOMC may operate and appear quite different, which could further affect bitcoin. He also said the dollar faces downside risk over the economic cycle, which may benefit bitcoin. Novogratz cautioned that if Donald Trump keeps his promise to select a dovish candidate, it could cause what he called an “oh shit moment,” pushing gold and bitcoin sharply higher.

He said many people expect Trump to nominate someone dovish, but there is still uncertainty. He suggested the market will not fully react until the decision is officially confirmed. He believes the market will not assume Trump will make an extreme move until he actually does it, and when it happens, bitcoin could see a strong response. Reports indicate that Trump has narrowed his choices for the next Federal Reserve chair to Kevin Hassett, Christopher Waller, and Kevin Warsh. The Federal Reserve recently carried out a 25-basis-point rate cut in September, which the market had expected, while Waller had been advocating for such a cut back in July. Throughout all of these developments, bitcoin remains central to the discussion around policy shifts and investor reaction, showing how bitcoin is tied to monetary direction. Increasing dovish pressure would likely influence bitcoin sentiment, and if leadership changes accelerate that shift, bitcoin could once again become the focal point of financial debate. Supporters argue that bitcoin thrives in environments where traditional policy appears uncertain, making bitcoin a recurring subject in both economic forecasts and investor expectations. As long as these political and financial decisions remain in motion, bitcoin will continue shaping conversations about risk assets, inflation hedges, and market psychology. Ultimately, bitcoin may see intensified attention if leadership changes confirm a softer stance, putting bitcoin alongside other alternative assets during turbulent policy transitions.