Galaxy CEO Mike Novogratz Says Establishing a Strategic Bitcoin Reserve Is a "Very Big Deal"

The fact that the U.S. now has a Bitcoin reserve will "send a message" to every country, according to Novogratz.

Galaxy CEO Mike Novogratz has weighed in on the establishment of a strategic Bitcoin reserve, saying that it is a “very big deal.”

According to Novogratz, the fact that the U.S. now has a Bitcoin reserve will “send a message” to every country.

Blockstream CEO Adam Back, who is known for being cited in Satoshi Nakamoto's whitepaper, has also reacted to the news. On X, Back stated that the announcement of the reserve is “huge” for moving the Overton window. He has added that it adds a “new ultimate reference for sovereign wealth funds, pension funds, mutual funds to add bitcoin allocations.”

As reported by U.Today, Bitcoin actually plunged lower following the announcement. The market was seemingly underwhelming by the fact that the reserve would be comprised of only forfeited coins.

That said, there is some room for potentially buying more cryptocurrencies. "My guess is they will find a way," Novogratz said.

It is worth noting that Novogratz previously argued that the idea of backing up the U.S. dollar (the reserve currency of the world) with other assets was “counterintuitive.”

$500,000 price prediction

As reported by U.Today, the cryptocurrency mogul predicted that the price of Bitcoin could potentially reach $500,000 if the U.S. were to create a Bitcoin reserve, given that it would kick off a domino effect, with other countries following suit.

Bitcoin is currently trading at $85,728, failing to revive bullish momentum despite being fully endorsed by the U.S. government.

Novogratz has opined that Bitcoin would need to reclaim the $91,000 for the bulls to get back on track.

The crypto billionaire has added that he is "very bullish" in the medium and long term.