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Aggressively Dovish Fed Chair: The Explosive Catalyst For A $200K BTC Price Tag
During a Friday interview, Kyle Chasse, the CEO of digital assets infrastructure company Galaxy, said, “that’s the potential biggest bull catalyst for Bitcoin and the rest of crypto.”
Novogratz noted that the Fed is currently slashing interest rates even when they shouldn’t be, adding that an ultra-dovish Chair would result in a “blow-off top” moment for the alpha cryptocurrency.
“Can Bitcoin get to $200K? Of course it could…Because it becomes a whole new conversation if that happens.”
According to the pundit, Trump keeping his promise to appoint “a dove” as Fed chair could spark an “oh shit moment” as both Bitcoin and gold skyrocket.
 
Novogratz suggested that the potential scenario won’t likely be priced in until the appointment is officially announced. “I don’t think the market will buy that Trump’s going to do the crazy, until he does the crazy,” he opined.
The US central bank cut the federal funds rate by 25 basis points in September for the first time since December 2024, and signaled an additional 50 basis points of easing expected by year-end.
A dovish stance from the Federal Reserve is typically expected to weaken the US dollar. However, it is often interpreted by many analysts as a bullish catalyst for riskier investments, such as Bitcoin, as traditional assets like bonds and term deposits become less profitable to investors.
Novogratz stressed that while bigger and faster rate reductions would be a boon for crypto, it would be detrimental to the US. “Do I want it to happen? No. Why? Because I kind of love America,” he stated.
“It would be really shitty for America,” he said, adding that there is a risk of the Federal Reserve losing its independence.
After the Fed’s rate cut on Sept. 17, BTC rose over 10%. Since then, the rally has stalled, with the maiden cryptocurrency trading just around $110,300 at press time.