Bitcoin Could Hit $200K if Trump Taps Fed Dove, Says Novogratz

• Galaxy Digital CEO links Bitcoin’s potential rally to possible Federal Reserve policy shifts.
• Aggressive rate cuts might undercut the dollar, driving gains for cryptocurrencies and gold.

On September 27, 2025, Mike Novogratz, CEO of Galaxy Digital, expressed that Bitcoin’s value could soar to $200,000 if former President Donald Trump selects a dovish Federal Reserve Chair to replace Jerome Powell. Speaking with Cryptopolitan, Novogratz suggested that appointing a “massive dove” could pave the way for drastic interest rate cuts, weakening the U.S. dollar and amplifying the appeal of alternative assets like Bitcoin and gold.

Novogratz emphasized that such a monetary policy shift could ignite a significant bullish surge for cryptocurrencies. He characterized it as a “blow-off top” for Bitcoin, spurred by a devaluing dollar that would enhance the attractiveness of non-traditional investments. Nevertheless, the Galaxy Digital CEO was cautious about the downside, predicting that such a move could endanger the Federal Reserve’s independence and provoke financial instability.

He elaborated that a dovish appointee at the helm of the Federal Reserve, potentially loyal to Trump, might rattle markets and erode investor confidence. “Do I want it to happen? No. Why? Because I kind of love America,” Novogratz stated, alluding to the risks of intertwining politics with central banking policy.

The report outlined that Trump’s shortlist for the Federal Reserve Chair position includes Kevin Hassett, Christopher Waller, and Kevin Warsh. Among these candidates, Waller has exhibited dovish inclinations. In July 2025, Waller advocated for a rate cut, and two months later, the Federal Reserve implemented a 25 basis point reduction, narrowing the gap between monetary policy trends and market expectations.

Current Chair Jerome Powell recently commented that “equity prices are fairly highly valued,” as reported by Cryptopolitan. Meanwhile, the S&P 500 has risen over 12% since the start of the year, with its price-to-earnings ratio trading at a 41% premium to its 20-year average. Novogratz noted that while markets have partially accounted for potential shifts in monetary policy, they have yet to fully price in the ramifications of an official leadership change at the Federal Reserve.

As of September 27, 2025, 18:11 UTC, Bitcoin (BTC) is trading at $109,451.01, reflecting a 0.43% decline over the last 24 hours, based on updated market data. Its 24-hour trading volume has dipped by 51.17%, underscoring the market’s continued volatility.