Mike Novogratz Weighs in on Trump's Bitcoin Reserve Strategy, Calling the Move "Historic"

Mike Novogratz, billionaire investor and CEO of Galaxy Digital, weighed in on Donald Trump's groundbreaking decision to establish a U.S. Strategic Bitcoin Reserve.

Billionaire investor and Galaxy Digital CEO Mike Novogratz has opened up on the implications of Donald Trump’s plans for a U.S. Strategic Bitcoin Reserve.

The investment chief, known for his bullish stance on crypto, described the move as historical, signaling Bitcoin’s (BTC) increasing importance on the global stage.

According to Novogratz, having a national Bitcoin reserve will broadcast a strong message to other nations. It signifies that the U.S. now recognizes BTC as a strategic financial asset, impacting both U.S. foreign policy and economic strategy in the long run.

However, beyond the reserve itself, Novogratz highlighted another critical shift: the planned regulatory changes to allow banks to participate in the crypto ecosystem.

According to the billionaire, this administrative action could be even more impactful than the Bitcoin reserve. As traditional financial institutions join the crypto sphere, it will accelerate institutional adoption, increasing liquidity and stability in the market.

This move is a direct response to the urgent need for greater participation from major financial institutions, which has been a key factor in the crypto market’s struggle to maintain momentum in 2025.

Another key development that Novogratz pointed out was the U.S. Treasury Department’s endorsement of dollar-backed stablecoins.

According to the Galaxy executive, this move by the Trump administration is designed to reinforce the dollar’s position as the world’s reserve currency.

He described Treasury Secretary Steven Mnuchin’s remarks, where he highlighted the role of stablecoins in facilitating global payments and trade, as a clear sign that the government understands the importance of stablecoins in preserving U.S. financial dominance.

Despite his long-term optimism, Novogratz acknowledged the challenges facing the crypto market in 2025. He pointed out the overheated rally of 2024, which peaked during Trump’s presidential inauguration, is a factor contributing to the current price stagnation.

Several key reasons behind the market’s struggle include the absence of a game-changing Web3 application, the collapse of the memecoin hype—particularly TRUMP Coin—and a shift in investment flows towards Chinese tech stocks like Alibaba.

As investors become enticed by opportunities in Europe and Asia, there’s also been an impending sell-off in U.S. stock markets, further impacting the crypto market.

In terms of Bitcoin’s price outlook, Novogratz stated that BTC needs to reclaim $91,000 to regain upward momentum, while currently trading between $75,000 and $90,000.

However, he noted the role of retail investors in reviving the crypto market, adding that every time they seem to disappear, they eventually return. For broader market recovery, Novogratz believes retail participation is crucial. Similarly, he sees Ethereum’s $2,000 support level as a key benchmark for maintaining confidence in the altcoin sector.

The billionaire also touched on the potential global ripple effects of Trump’s Bitcoin reserve strategy, suggesting that other countries may follow suit in recognizing Bitcoin as a strategic asset.

This shift could push governments to reconsider their approach to digital currencies, ultimately accelerating worldwide adoption.

Despite short-term volatility, Novogratz remains bullish on the future of crypto. While institutional adoption continues to grow, he believes the next major wave of excitement will come from new Web3 innovations and transformative blockchain applications, which could reignite investor enthusiasm and drive the next phase of growth.