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The price of Bitcoin has had a mixed performance so far in 2025, falling to a low of around $74,000 in the first quarter of the year. The premier cryptocurrency has since set multiple all-time highs above the $120,000 mark over the past few months.
However, while the Bitcoin price seems to have fallen into a consolidation phase in recent weeks, the general feeling in the market has always been that there remains an upside potential for the market leader. Galaxy Digital CEO Mike Novogratz has come forward to echo these sentiments while identifying the “biggest catalyst” to kickstart a potential rally.
‘Exceptionally Dovish’ Fed Chair Could Guide BTC To $200,000: Novogratz
In a recent interview with Kyle Chasse on YouTube, Novogratz shared that the next major move for the Bitcoin price could hinge on the potential replacement of US Federal Reserve (Fed) Chair Jerome Powell. According to the Galaxy Digital CEO, the BTC price could go on a significant rally if the next Fed chair is exceptionally dovish.
Novogratz revealed that the appointment of a dovish Fed chair is the potential biggest bull catalyst for Bitcoin and the crypto market. The CEO affirmed that the conversation changes for the world’s largest cryptocurrency, which could reach as high as $200,000, if there is a leadership change.
For context, a dove refers to a policymaker or advisor (typically in the Federal Reserve) who takes a looser monetary stance, including interest rate cuts, in a bid to grow the economy.
The US Fed cutting interest rates is usually bullish for crypto and other risk assets, as it means that traditional investment instruments like bonds offer less lucrative returns. Hence, investors tend to flock to digital assets and the equities market.
However, Novogratz noted the potential impact of aggressive rate cutting on the US dollar. While lower interest rates are usually positive for risk assets like Bitcoin, it has the opposite effect on the dollar market.
The Federal Reserve announced a rate cut of 25 basis points (25bp) after the Federal Open Market Committee (FOMC) meeting in September. This decision—first of its kind this year—is expected to be the first of a couple more rate cuts to come before the end of 2025.
Bitcoin Price At A Glance
While the Bitcoin price responded positively to the Fed’s decision to cut rates in September, the premier cryptocurrency has struggled to build on the macro-driven momentum. As of this writing, BTC is valued at around $109,570, reflecting a mere 0.1% decline in the past day.
