Novogratz: Bitcoin Reserve 'Very Big Deal'
Galaxy Digital CEO Mike Novogratz has emphasized the significance of the newly established U.S. Bitcoin reserve, calling it a "very big deal" with global implications. He believes that this move sends a strong message to other nations about the growing role of Bitcoin in financial systems.
Echoing this perspective, Blockstream CEO Adam Back, a key figure in Bitcoin’s early development, also highlighted the importance of the reserve. Back suggested that this development shifts the "Overton window," making it easier for sovereign wealth funds, pension funds, and mutual funds to justify Bitcoin allocations.
Despite the fanfare surrounding the announcement, Bitcoin’s price experienced a decline, largely due to the revelation that the reserve would consist only of forfeited coins. However, Novogratz speculated that there might be future opportunities for expanding the reserve. "My guess is they will find a way," he remarked.
Notably, Novogratz had previously expressed skepticism about the idea of backing the U.S. dollar—the world's reserve currency—with alternative assets, describing it as "counterintuitive."
Looking ahead, Novogratz has maintained a bullish stance on Bitcoin. He has predicted that if the U.S. fully commits to a Bitcoin reserve, it could trigger a domino effect, encouraging other countries to follow suit. Under such circumstances, Bitcoin’s price could potentially surge to $500,000.
At present, Bitcoin is trading at $85,728, struggling to regain upward momentum even with the endorsement of the U.S. government. Novogratz believes that the cryptocurrency needs to break past $91,000 to reignite bullish sentiment. However, he remains confident in Bitcoin’s long-term prospects, expressing a strong positive outlook for its future trajectory.
