Mike Novogratz Predicts Bitcoin Surge to $200,000 Amid US Economic Concerns
Galaxy Digital CEO Mike Novogratz believes Bitcoin has the potential to reach $200,000, nearly doubling its current price. In a recent conversation, Novogratz expressed concerns about the American economy, despite his company’s strong positioning in the cryptocurrency market.
Novogratz’s primary worry stems from the potential loss of independence of the U.S. Federal Reserve. He fears that former President Donald Trump’s repeated calls for Jerome Powell’s removal could lead to a politically influenced central bank.
“I want it to happen? No. Why? Because I kind of love the United States. I love New York. And it would be really bad for America,” Novogratz stated.
Galaxy CEO Cautious Yet Optimistic About US Economy
During a 50-minute discussion, Mike Novogratz touched on various aspects of the cryptocurrency market, including ETFs, tokenization, market cycles, and DeFi. However, his outlook on the American economy took center stage. Given its global significance, the Fed’s monetary policies can significantly impact various asset classes.
Novogratz suggests that gold could potentially reach $10,000, while Bitcoin could soar to $200,000.
Novogratz, whose company holds substantial positions in Bitcoin, Ethereum, Solana, and Hyperliquid, worries that Trump might weaken the U.S. dollar by appointing a “dovish” Fed chair.
“What I fear, and I think it’s very likely to happen in the country, is that we’re going to lose the independence of the Fed,” Novogratz explained.
“Why do I think that? Because Trump has already said he wants someone ‘dovish’ at the Fed. He’s going to pick someone like that, and if he picks someone leaning far enough in that direction, there will be a ‘holy cow’ moment. Gold will skyrocket, Bitcoin will skyrocket,” he added.
The executive believes the market has already priced in this potential shift, but acknowledges the uncertainty surrounding future events.
“We know what the playbook is for what you should do as a Fed governor, as Treasury Secretary,” Novogratz stated.
“So, I don’t think the market will believe Trump will do something crazy… until he does something crazy. And I think that’s the biggest potential bullish catalyst for Bitcoin and the rest of the crypto market: the Fed cutting when it shouldn’t and putting a ‘super dovish’ person in there.”
Trump’s Criticism of Powell Echoed by Others
Donald Trump has previously suggested the Fed implement significant interest rate cuts. Powell’s term as Fed chair is set to continue until May 2026.
Even Scott Bessent, whom Novogratz considers highly experienced, has criticized Powell and reportedly begun interviewing for his position.
Currently, Chris Waller, Kevin Hassett, Kevin Warsh, and Stephen Miran are considered frontrunners for the next Fed chair. However, the race remains open, with Bessent also mentioned as a potential candidate.
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