Michael Novogratz Predicts $500,000 BTC Price Surge Should the US Establish a Bitcoin Strategic Reserve

Novogratz suggested that it would be prudent for the US to not only retain its existing Bitcoin holdings but also to consider acquiring more

Billionaire crypto investor Michael Novogratz expressed skepticism over the possibility of the United States establishing a Bitcoin strategic reserve, despite a proposal put forth by President-elect Donald Trump.

In an interview with Bloomberg Television, Novogratz stated that a Bitcoin strategic reserve is “still a low probability,” given the challenges posed by the current political landscape. While Republicans maintain control of the Senate, Novogratz highlighted that they do not have the supermajority necessary to pass such significant legislation.

However, Novogratz suggested that the US should not only maintain its existing Bitcoin holdings but also consider acquiring more, positioning the nation as a leader in technology and digital assets.

“We want to show the world that we are going to be a technology-first country, a crypto, digital asset-first country,” said Novogratz, emphasizing the potential benefits of embracing cryptocurrencies.

During the 2024 National Bitcoin conference in Nashvilee, Trump announced plans to maintain all Bitcoin held by the government, transforming it into “a permanent national asset to benefit all Americans.”

Some advocates, such as Senator Cynthia Lummis who also attended the venue, have proposed that the US should purchase approximately 1 million Bitcoin, which would equate to over $90 billion at current market values.

Should the US establish a Bitcoin strategic reserve, Novogratz predicted a dramatic price surge for the cryptocurrency, estimating it could reach $500,000. Currently, Bitcoin has been trading at around $93,000.

“If we get the Bitcoin reserve, as a guy who owns a lot of Bitcoin, I won’t cry,” he remarked, adding that such a move would create a new paradigm, compelling other countries to follow suit.

Trump’s Victory Contributed to 30% Bitcoin Surge

The recent presidential election victory of Trump has positively impacted the cryptocurrency market, with Bitcoin surging over 30% and the total digital asset market capitalization pushing past its pre-pandemic peak.

Trump has shifted from being a cryptocurrency skeptic during his first term to becoming a supporter, with his family even launching a decentralized finance project dubbed World Liberty Financial and its native token (WLF).

Meanwhile, Novogratz, a former partner at Goldman Sachs and Fortress Investment Group, saw his net worth increase to approximately $5.4 billion this week, up from $1.6 billion at the end of 2022. Notably, Galaxy Digital experienced its largest trading day of the year on November 6, following Trump’s electoral success.

In addition to his market commentary, Novogratz took to X (formerly Twitter) to criticize Senator Elizabeth Warren’s remarks regarding Trump’s announcement that billionaire Elon Musk and entrepreneur Vivek Ramaswamy would lead a new initiative called the Department of Government Efficiency (DOGE), a name inspired by Musk’s affinity for the Dogecoin meme.

At the time of writing, BTC is trading at $93,000, up 141% year-to-date.

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