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.
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.
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.
