In a recent interview, Mike Novogratz, CEO of Galaxy Digital, highlighted the significant impact that a dovish nominee for the U.S. Federal Reserve chair could have on the cryptocurrency market, particularly Bitcoin. Novogratz suggested that this scenario could act as a “major bull catalyst,” potentially propelling Bitcoin prices toward the staggering figure of $200,000.
The current chair, Jerome Powell, is scheduled to complete his term in May 2026, with various candidates under consideration for his replacement, including Kevin Hassett, Christopher Waller, and Kevin Warsh. Each candidate holds differing views on monetary policy, which could sharply influence market dynamics. For instance, Waller has previously advocated for rate cuts, signaling a shift that could support a more accommodative monetary environment.
During the conversation with crypto investor Kyle Chasse, Novogratz underscored the volatility inherent in such a transition, stating, “It would be really shitty for America,” alluding to potential threats to financial stability and Fed independence. Nevertheless, he predicted that Bitcoin, along with gold, could experience explosive growth if a hyper-dovish nominee is confirmed.
Market reactions to these potential changes may remain subdued until an official announcement is made, according to Novogratz, who emphasized that investors are likely to wait for concrete developments before diving back into the market. “I don’t think the market will buy that Trump’s going to do the crazy, until he does the crazy,” he remarked, referencing the political climate surrounding potential nominations.
The Federal Reserve recently initiated its first rate cut of the cycle, a modest 25 basis points in September, which was widely anticipated. However, a more aggressive stance from the next chair could shift investor interest toward cryptocurrencies, which Novogratz believes would trigger a “whole new conversation.”
In related developments, Alessio Quaglini, CEO of Hex Trust, has expressed optimism about U.S. banks beginning to offer Bitcoin services shortly, pending regulatory clarity. He forecasts that most American banks will soon provide custody, trading, and deposit services for Bitcoin. Quaglini described U.S. regulation as the “global benchmark” for institutional adoption and sees the potential for stablecoins to disrupt the traditional SWIFT payment system.
Founded in 2018, Hex Trust specializes in providing crypto custody, trading, lending, and staking services to institutions across Asia, the Middle East, and Europe. With over 200 employees and projections of $20 million in revenue by 2025, the firm is also contemplating a future IPO.
The discussions surrounding these shifts in monetary policy and institutional adoption are part of an evolving narrative in the cryptocurrency landscape, suggesting a pivotal moment in the financial markets.
