Galaxy’s Novogratz – Trump’s next Fed Chair could ‘kick off megacycle’

In a recent interview with Anthony Pompliano, Galaxy Digital Inc. CEO Mike Novogratz stated that the future of the cryptocurrency industry could be impacted by President Trump’s political decisions. 

With President Trump being openly critical of current Fed Chair Jerome Powell and speculations persisting about whether or not the President will replace him before his term is up, Mike Novogratz weighed in on the conversation during a sitdown with Anthony Pompliano. 

Novogratz sees political pressure influencing crypto’s future

Galaxy Digital Inc. CEO Mike Novogratz believes that the future of cryptocurrency markets could be directly shaped by U.S. politics, particularly President Donald Trump’s choice for the next Federal Reserve Chair. 

He shared this in an interview aired Tuesday, where Novogratz argued that the independence of the central bank is under unprecedented strain and that its leadership could determine whether the next phase in crypto becomes a historic “megacycle.”

“Depending on who Trump picks as the next Fed governor, it could kick off a whole freaking mega cycle,” he said. Novogratz noted that the central bank faces “political pressure” to cut interest rates even as the stock market and gold hover at record highs. 

Novogratz suggested that a Chair who aligns with Trump’s administration could prioritize growth and liquidity over inflation control, which would ignite a new wave of risk-taking across financial markets.

In the interview, Novogratz stated that the crypto industry has delivered substantial wealth in the past year, despite the industry’s shifts between bear and bull markets. He stated that markets “run out of steam” when monetary policy pivots, adding that in downturns, digital assets often trade back to parity or even at discounts. 

What are the odds of a crypto mega cycle? 

President Trump has repeatedly criticized current Fed Chair Jerome Powell for keeping interest rates “too high.” Powell’s term ends in May 2026, but speculation about an earlier replacement has fueled debate about the Fed’s independence. 

President Trump has narrowed potential candidates to Kevin Hassett, the former National Economic Council director, Kevin Warsh, a former Fed governor, and Christopher Waller, who is currently serving on the Fed board.

The newly appointed Fed governor, Stephen Miran, has already called for steep rate cuts, warning that the current policy risks weakening the central bank’s employment mandate. Within the Federal Open Market Committee, other members argue that structural nonmonetary factors are driving down the neutral rate of interest.

Novogratz told interviewer Anthony Pompliano that the “political situation” makes it harder than ever to predict the top of the Bitcoin cycle. He also stated that artificial intelligence is an underestimated disruptor of the market, calling it the “great job destroyer.”

“There’s a lot more uncertainty in macro than I’ve ever seen, which makes calling the top of the cycle much more difficult,” he said.