Michael Novogratz, the billionaire founding father of crypto funding agency Galaxy Digital, expressed skepticism concerning the chance of the USA establishing a Bitcoin strategic reserve, a proposal put forth by President-elect Donald Trump.
Novogratz Predicts $500,000 BTC Value Surge
In an interview with Bloomberg Tv, Novogratz acknowledged, “I nonetheless suppose it’s a low chance,” highlighting the challenges posed by the present political panorama. Though Republicans management the Senate, Novogratz asserts that they don’t possess the supermajority required to cross such important laws.
Novogratz urged that it will be prudent for the US to not solely retain its present Bitcoin holdings but additionally to contemplate buying extra, positioning the nation as a frontrunner in know-how and digital belongings.
“We wish to present the world that we’re going to be a technology-first nation, a crypto, digital asset-first nation,” Novogratz mentioned, emphasizing the potential advantages of embracing cryptocurrencies.
In the course of the 2024 Nationwide Bitcoin convention in Nashvilee, Trump introduced plans to take care of all Bitcoin held by the federal government, reworking it into “a everlasting nationwide asset to profit all People.”
Some advocates, resembling Senator Cynthia Lummis who additionally attended the venue, have proposed that the US should buy roughly 1 million Bitcoin, which might equate to over $90 billion at present market values.
Ought to the US set up a Bitcoin strategic reserve, Novogratz predicted a dramatic worth surge for the cryptocurrency, estimating it might attain $500,000. At present, Bitcoin has been buying and selling at round $93,000.
“If we get the Bitcoin reserve, as a man who owns loads of Bitcoin, I gained’t cry,” he remarked, including that such a transfer would create a brand new paradigm, compelling different nations to observe swimsuit.
Trump’s Election Victory Sparks 30% Bitcoin Surge
The latest presidential election victory of Trump has positively impacted the cryptocurrency market, contributing to a greater than 30% enhance in Bitcoin’s worth and pushing the general digital asset market above its pre-pandemic peak.
Trump has shifted from being a cryptocurrency skeptic throughout his first time period to changing into a vocal supporter, along with his household even launching a decentralized finance mission dubbed World Liberty Monetary and its native token (WLF).
Novogratz, a former companion at Goldman Sachs and Fortress Funding Group, has additionally seen a big enhance in his web value, which rose to roughly $5.4 billion this week, up from $1.6 billion on the finish of 2022. Notably, Galaxy Digital skilled its largest buying and selling day of the yr on November 6, following Trump’s electoral success.
Along with his market commentary, Novogratz took to X (previously Twitter) to criticize Senator Elizabeth Warren’s remarks concerning Trump’s announcement that billionaire Elon Musk and entrepreneur Vivek Ramaswamy would lead a brand new initiative referred to as the Division of Authorities Effectivity (DOGE), a reputation impressed by Musk’s affinity for the Dogecoin meme.
On the time of writing, BTC is buying and selling at $93,000, up 141% year-to-date.
Featured picture from DALL-E, chart from TradingView.com