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Novogratz Forecasts Bitcoin to Reach $500K with Strategic Reserve; Yet Chances Remain Slim
- Will Trump deliver on the Bitcoin Reserve, or will red tape crush the dream? Spoiler: Dreams will likely be crushed.
- Galaxy Digital CEO Mike Novogratz believes that the chances of a BTC Strategic Reserve are slim, thanks to a Senate gridlock.
- He believes that the US should flex its tech muscles and hold onto its Bitcoin stash – sentiments echoed by new president Donald Trump.
- However, if a miracle occurs and the Reserve is formed, Novogratz can see a price target for Bitcoin of US $500k.
The fallout from Trump’s victorious 2024 electoral campaign is becoming clearer, with the new US president officially selecting personnel for key roles. On the economic front, markets have reacted positively, with several major US indices experiencing fortnightly gains of 5%.
However, as expected, it’s been the crypto market that’s truly relished news of Trump’s win. Much of the optimism surrounding a Republican Office comes back to pre-election promises of a US Strategic Reserve, pushed by Trump and Senator Cynthia Lummis.
So will the new president be able to follow through on his pledge, or will bureaucracy stand in the way?
Related: Trump Unleashes Musk on D.O.G.E. Office as Dogecoin Vaults to Top Six
Strategic Reserve Unlikely, According to Galaxy Digital CEO Mike Novogratz
Crypto billionaire and BTC proponent Mike Novogratz has weighed in on the US Strategic Reserve debate, arguing that the chances of it being implemented during this term are slim.
Novogratz is not the only person in the industry to hold this belief – as it stands, while Republicans control the Senate, they will find it very difficult to push through such a radical economic proposal.
In an interview with Bloomberg, the founder of Galaxy Digital outlined his post-election thoughts.
I still think it’s a low probability [for a Bitcoin Strategic Reserve]…I think it would be very smart for the United States to take the Bitcoin they have and maybe add some to it and say we want to show the world that we are going to be a technology first country, a crypto, digital asset first country.
Michael Novogratz, CEO of Galaxy Digital US Government to “Keep” All Bitcoin it Acquires
Although a Strategic Reserve might be unlikely, Trump has still vowed for the Treasury to hold onto all BTC they come across, rather than selling the assets as we’ve seen in the past. This is quite different to formulating the proposed Reserve, which would theoretically hold over AU $100b worth of BTC.
Despite the (relative) pessimism, if the small likelihood of a Strategic Reserve comes to fruition, Bitcoin holders could be in for a monstrous payday.
If we get the Bitcoin reserve, as a guy who owns a lot of Bitcoin, I won’t cry. I think Bitcoin heads to US $500,000. It is a different paradigm because it forces every other country in.
Michael Novogratz, CEO of Galaxy Digital So, according to Novogratz, if Trump manages to pull off the unthinkable and create an official Bitcoin Reserve…we can all start counting our lambos.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
