Novogratz said during an interview with Kyle Chasse published on YouTube that if the Fed begins cutting when it probably should not, and a strongly dovish chair is installed, investors could rush into assets like gold and Bitcoin.
Based on reports, he suggested a scenario where markets chase higher prices in a short span, producing what traders call a blow-off top. He also allowed that Bitcoin could reach $200K under that set of conditions.
Trump told reporters on Sept. 6 that those were the top three. Novogratz said markets often wait for official action, so a rally of the size he described may not begin until a decision is announced and investors are sure of the policy shift.
Daleep Singh, vice chair and chief global economist at PGIM Fixed Income, agreed that the Fed could act quite differently after Powell’s term ends in May 2026.
According to Singh, the risks to the dollar may be skewed to the downside if policymakers turn more dovish. Novogratz warned this could erode the Fed’s independence and produce broader problems for the US economy, even as it lifts prices of risk assets.
The Fed delivered its first rate cut of 25 basis points in September, a move markets largely expected. Reports show that Governor Waller had been urging a cut as early as July, which highlights the range of views inside the system.
Those past steps help explain why some investors now talk about how far policy could tilt and how big an impact that might have on crypto.
Featured image from Pixabay, chart from TradingView
