Emily Walker
Billionaire Michael Novogratz, who heads the crypto investment firm Galaxy Digital, voiced doubts about the potential for the United States to create a Bitcoin strategic reserve, a suggestion made by President-elect Donald Trump.
Novogratz Forecasts $500,000 Bitcoin Value
In a recent interview with Bloomberg Television, Novogratz expressed that the chances are slim, mainly due to the complexities of the current political environment. Despite the Republican majority in the Senate, he indicated that they lack the necessary supermajority to enact such important legislation.
He advised that the US should not only maintain its current Bitcoin reserves but also think about acquiring additional coins, to affirm its position at the forefront of technology and digital assets.
“We want to demonstrate that we are a technology-first nation, prioritizing crypto and digital assets,” Novogratz stated, highlighting the advantages of adopting cryptocurrencies.
During the 2024 National Bitcoin Conference in Nashville, Trump revealed plans to keep all government-held Bitcoin, declaring it as “a permanent national asset for the benefit of all Americans.”
Additionally, proponents like Senator Cynthia Lummis, who was also present, suggested that the US should aim to purchase around 1 million Bitcoin, worth over $90 billion at current prices.
If the US were to establish a Bitcoin strategic reserve, Novogratz predicted a significant spike in Bitcoin’s price, estimating it could soar to $500,000. Currently, Bitcoin’s price hovers around $93,000.
“If we obtain the Bitcoin reserve, as someone who owns a substantial amount, I wouldn’t mind,” he added, indicating that this move could shift global dynamics, urging other nations to take similar actions.
Trump’s Victory Causes Bitcoin to Rise by 30%
Trump’s recent election win has had a positive effect on the cryptocurrency market, resulting in Bitcoin’s value increasing by over 30% and elevating the overall market beyond its pre-pandemic levels.
This time around, Trump has transitioned from being critical of cryptocurrencies during his first term to vocally supporting them, with his family launching a decentralized finance project called World Liberty Financial along with its token (WLF).
Novogratz, once a partner at Goldman Sachs and Fortress Investment Group, has witnessed a massive increase in his wealth, which surged to approximately $5.4 billion this week, a significant rise from $1.6 billion at the end of 2022. Notably, Galaxy Digital recorded its highest trading volume of the year on November 6, following Trump’s electoral win.
In addition to his market insights, Novogratz took to X (formerly Twitter) to comment on Senator Elizabeth Warren’s criticism of Trump’s announcement regarding a new initiative led by billionaires Elon Musk and entrepreneur Vivek Ramaswamy, named the Department of Government Efficiency (DOGE), referencing Musk’s love for the Dogecoin meme.
As of now, Bitcoin is trading at $93,000, reflecting a 141% increase so far this year.
Featured image sourced from DALL-E, chart provided by TradingView.com.