Mike Novogratz Says Fed Rate Cuts Could Revive Bitcoin Price Momentum

Galaxy Digital CEO Mike Novogratz remains optimistic about Bitcoin despite its recent lackluster performance, arguing that a future shift in U.S. monetary policy could reignite the cryptocurrency’s growth narrative.

Speaking on Anthony Scaramucci’s All Things Markets podcast, Novogratz pushed back against claims that Bitcoin has become a “dead asset.” The discussion came as several indicators painted a bearish picture for the leading cryptocurrency. Scaramucci pointed to Bitcoin’s historically low Relative Strength Index (RSI), declining Google search interest, and the fact that long-term holders now control roughly 79% of the circulating supply.

While acknowledging the current weakness in the market, Novogratz urged investors to remain patient. He suggested that Bitcoin deserves the benefit of the doubt, at least through the next year, before conclusions are drawn about its long-term prospects.

According to Novogratz, Bitcoin’s recent struggles are closely tied to expectations that the Federal Reserve will maintain a hawkish stance under new Fed Chair Kevin Warsh. Markets have been pricing in the possibility of higher interest rates for an extended period, creating pressure on risk assets such as Bitcoin and even gold.

“Bitcoin is not trading well,” Novogratz admitted, noting that investor sentiment has weakened significantly. However, he believes the current outlook could change if economic conditions deteriorate and force the Federal Reserve to begin cutting interest rates again.

The Galaxy Digital chief argued that many investors are overlooking the possibility of future monetary easing. He emphasized that the growing U.S. debt burden may eventually require policies that support inflation and lower rates, conditions that have historically benefited Bitcoin.

Novogratz also acknowledged that Bitcoin currently lacks strong new demand and described the market as having “no energy” and “no new buyers.” He further referenced challenges surrounding Michael Saylor’s Bitcoin-backed financing strategies.

Despite these concerns, Novogratz remains confident that Bitcoin’s bullish narrative will return. He encouraged long-term investors to focus on the coming months and suggested that a clearer picture of Bitcoin’s future could emerge by March next year.