Galaxy Digital CEO Sees Bitcoin Hitting $200K With Next Fed Chair Shift

Galaxy Digital CEO Mike Novogratz says the next U.S. Fed Chair could help drive Bitcoin to $200,000 if they support easier money policies.

Although he noted that if the new Fed leader adopts a very easy-money approach, it could trigger a significant rally in the markets, pushing both gold and Bitcoin much higher, he also warned that the economic consequences could be severe.

Earlier this month, President Donald Trump revealed that he was considering Kevin Hassett, former Fed Governor Kevin Warsh, and current Fed Governor Chris Waller as candidates to replace Powell.

Novogratz added that if markets expect a dovish Fed pick, it won’t be official until it actually happens, and that people won’t believe Trump will do something unexpected until he actually does.

Bitcoin Dips Amid Market Pressure

Bitcoin has been under pressure, with the crypto market in a bearish phase, trading near $109,000 after a 6% drop last week.

The drop is linked to several factors, including Jerome Powell reducing hopes for more rate cuts this year, as he said at a luncheon that the policy will depend on economic data and is not pre-set.

According to  Novogratz, a dovish shift could boost Bitcoin in the short term, but it might hurt the Fed’s independence, which he described as very bad for America.

Worsening the situation, crypto liquidations topped $1.1 billion this week, with Ethereum leading at $409 million and Bitcoin following at $272 million. Traders are also preparing for a huge $17 billion Bitcoin options expiry on Deribit, with the put-call ratio of 0.75 showing a slightly bearish outlook.

Currently, Bitcoin is testing support at $105K, just above the 200-day EMA at $104K, a level last seen in October 2024. A drop below this area could lead to further losses, while a move above the $112.8K SMA might trap sellers and spark a rebound.