Galaxy Digital Inc. (NASDAQ:GLXY) CEO Mike Novogratz said in an interview aired Tuesday that the political landscape could influence the cryptocurrency cycle, depending on President Donald Trump’s choice for the next Federal Reserve Chair.
Fed Under Political Pressure, Says Novogratz
In response to fellow cryptocurrency advocate Anthony Pompliano’s question about the 4-year Bitcoin (CRYPTO: BTC) cycle, Novogratz said that the “political situation” makes predicting the top of the cycle that much more difficult.
“Depending on who Trump picks as the next Fed governor, it could kick off a whole freaking mega cycle,” Novogratz stated. “We throw so many independents into the toilet and crypto’s going a lot higher, right?”
He argued that the central bank was under “political pressure” to lower interest rates at a time when the stock market and gold were at all-time highs.
A Lot More ‘Macro Uncertainty’
Novogratze also introduced artificial intelligence into the argument, labeling it as the “great job destroyer” and one whose impact is understated.
“So, 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 added.
Trump Vs. Fed
This statement comes after Stephen Miran, Trump’s new Fed governor, called for aggressive interest rate cuts, arguing that the current monetary policy poses “material risks” to the Fed’s employment mandate. Miran’s stance diverges significantly from that of other FOMC members, who believe that nonmonetary forces are depressing the neutral rate of interest.
Trump has advocated for aggressive rate cuts and lashed out at Fed Chair Jerome Powell for keeping interest rates “too high.”
Powell’s term as chair ends in May 2026. Alongside Trump, Treasury Secretary Scott Bessent has narrowed the list to three potential candidates: Kevin Hassett, director of the National Economic Council; Kevin Warsh, former Fed board member; and Christopher Waller, current board member.
Meanwhile, cryptocurrency bettors on Polymarket see a 21% probability that Trump will name Waller as a “shadow chair” before the year ends, while the likelihood of no such announcement sits at 45%.
Price Action: Galaxy shares were up 0.94% in after-hours trading after closing 1.63% lower at $33.14 during Tuesday’s regular trading session, according to data from Benzinga Pro.
The stock exhibited a very low growth score — a measure of the stock’s combined historical expansion in earnings and revenue across multiple periods. How does it compare with Coinbase Global Inc. (NASDAQ:COIN) and other cryptocurrency-linked stocks? Visit Benzinga Edge Stock Rankings to find out.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
