Novogratz doubts US Bitcoin reserve under Trump

Mike Novogratz, CEO of Galaxy Digital, stated that President-Elect Donald Trump is unlikely to establish a Bitcoin (CRYPTO:BTC) strategic reserve during his administration.

In an interview with Bloomberg TV, Novogratz highlighted the challenges, emphasising that the U.S. national debt, nearing $36 trillion, complicates the potential for such an initiative.

He cited potential opposition among governmental branches as a significant obstacle.

"I think it would be very smart for the United States to take the Bitcoin it has, maybe add some to it, and say we want to show the world that we're going to be a technology-first country — a crypto, a digital asset-first country. I don't necessarily think the dollar needs anything to back it up," Novogratz remarked, pointing to the current dominance of the U.S. dollar bolstered by the nation's military and economic strength.

Novogratz speculated that if the U.S. were to implement a Bitcoin strategic reserve, it could significantly impact the digital currency's valuation.

"I think Bitcoin heads to $500,000 — it's a whole different paradigm because it forces every other country [to buy it], and countries are already buying it," he noted.

Citing examples, he referenced El Salvador, which became the first country to adopt Bitcoin as legal tender in 2021 under President Nayib Bukele.

The nation continues to expand its holdings.

Similarly, Bhutan has been involved in Bitcoin mining and held $780 million in digital assets as of September 2024, according to Arkham Intelligence.

Both countries have seen substantial growth in their Bitcoin reserves, with El Salvador realising nine-digit gains and Bhutan's holdings exceeding $1 billion during the recent crypto rally.

According to Novogratz, the establishment of a Bitcoin reserve by the U.S. would initiate an international race for cryptocurrency accumulation.

At the time of reporting, the Bitcoin price was $90,036.03.