Michael Novogratz, the billionaire founder of crypto investment firm Galaxy Digital, expressed skepticism about the likelihood of the United States establishing a strategic Bitcoin reserve, a proposal put forth by the president-elect. Donald Trump.
Novogratz predicts a $500,000 BTC price increase
In one interview Speaking to Bloomberg Television, Novogratz stated, “I still think the chances are slim,” highlighting the challenges posed by the current political landscape. Although Republicans control the Senate, Novogratz claims they do not have the supermajority needed to pass such important legislation.
Novogratz suggested that it would be wise for the US to not only maintain its existing Bitcoin holdings, but also consider acquiring more Bitcoin, positioning the country as a technology and technology leader. digital assets.
“We want to show the world that we will become a technology-first country, a crypto, digital asset-first country,” Novogratz said, highlighting the potential benefits of embracing cryptocurrencies.
At the 2024 National Bitcoin Conference in Nashvilee, Trump announced plans to retain all government-owned Bitcoin and transform it into “a permanent national asset for the benefit of all Americans.”
Some proponents, such as Senator Cynthia Lummis who also attended the venue, have suggested that the US should purchase around 1 million Bitcoin, which at today’s market value amounts to more than $90 billion.
Should the US establish a strategic Bitcoin reserve, Novogratz predicted a dramatic rise in Bitcoin prices cryptocurrencyEstimates suggest this could reach $500,000. Currently, Bitcoin is trading for around $93,000.
“If we get the Bitcoin reserve, as a man who owns a lot of Bitcoin, I will not cry,” he noted, adding that such a move would create a new paradigm, forcing other countries to follow suit.
Trump’s election victory drives a 30% Bitcoin spike
Trump’s recent presidential election victory has had a positive impact on the cryptocurrency market, helping to increase Bitcoin’s value by more than 30% and pushing the overall digital asset market above its current levels. pre-pandemic peak.
Trump has gone from a cryptocurrency skeptic to a vocal supporter during his first term, with his family even launching a decentralized finance project called 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 about $5.4 billion this week, up from $1.6 billion at the end of 2022. It is notable that Galaxy Digital had its biggest trading day of the year on November 6, after Trump’s electoral success.
In addition to his market commentary, Novogratz also contacted X (formerly Twitter). criticize Senator Elizabeth Warren’s comments on 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% since the beginning of the year.
Featured image of DALL-E, chart from TradingView.com