Michael Novogratz, the billionaire founder of crypto investment firm Galaxy Digital, expressed skepticism regarding the likelihood of the United States establishing a Bitcoin strategic reserve, a proposal put forth by President-elect Donald Trump.
Novogratz Predicts $500,000 BTC Price Surge
In an year interview with Bloomberg Television, Novogratz stated, “I still think it's a low probability,” highlighting the challenges posed by the current political landscape. Although Republicans control the Senate, Novogratz asserts that they do not possess the supermajority required to pass such significant legislation.
Novogratz suggested that it would be prudent for the US to not only retain its existing Bitcoin holdings but also to consider acquiring more, positioning the nation as a leader in technology and digital assets.
“We want to show the world that we are going to be a technology-first country, a crypto, digital asset-first country,” Novogratz said, emphasizing the potential benefits of embracing cryptocurrencies.
During the 2024 National Bitcoin conference in Nashvilee, Trump announced plans to maintain all Bitcoin held by the government, transforming it into “a permanent national asset to benefit all Americans.”
Some advocates, such as Senator Cynthia Lummis who also attended the venue, have proposed that the US should purchase approximately 1 million Bitcoin, which would equate to over $90 billion at current market values.
Should the US establish a Bitcoin strategic reserve, Novogratz predicted a dramatic price surge for the cryptocurrencyestimating it could reach $500,000. Currently, Bitcoin has been trading at around $93,000.
“If we get the Bitcoin reserve, as a guy who owns a lot of Bitcoin, I won't cry,” he remarked, adding that such a move would create a new paradigm, compelling other countries to follow suit.
Trump's Election Victory Sparks 30% Bitcoin Surge
The recent presidential election victory of Trump has positively impacted the cryptocurrency market, contributing to a more than 30% increase in Bitcoin's value and pushing the overall digital asset market above its pre-pandemic peak.
Trump has shifted from being a cryptocurrency skeptic during his first term to becoming a vocal supporter, with his family even launching a decentralized finance project dubbed World Liberty Financial and its native token (WLF).
Novogratz, a former partner at Goldman Sachs and Fortress Investment Group, has also seen a significant increase in his net worthwhich rose to approximately $5.4 billion this week, up from $1.6 billion at the end of 2022. Notably, Galaxy Digital experienced its largest trading day of the year on November 6, following Trump's electoral success.
In addition to his market commentary, Novogratz took to criticize Senator Elizabeth Warren's remarks regarding Trump's announcement that billionaire Elon Musk and entrepreneur Vivek Ramaswamy would lead a new initiative called the Department of Government Efficiency (DOGE), a name inspired by Musk's affinity for the Dogecoin meme.
At the time of writing, BTC is trading at $93,000, up 141% year-to-date.
Featured image from DALL-E, chart from TradingView.com
