Mike Novogratz, the founder of crypto investment and research firm Galaxy Digital, believes there is a "Low probability" that President-Elect Trump will establish a Bitcoin (BTC) strategic reserve during his term.
In an interview with Bloomberg TV, the Galaxy Digital CEO explained that he expects a clash between the different branches of government to obstruct the process. Novogratz also argued that the US dollar does not need another asset to maintain its dominance as the global reserve currency:
"I think it would be very smart for the United States to take the Bitcoin it has, maybe add some to it, and say we want to show the world that we're going to be a technology-first country — a crypto, a digital asset-first country. I don't necessarily think the dollar needs anything. to back it up."
"We have the strongest military in the world. We have the dominant economy in the world," the Galaxy Digital CEO continued — explaining that he expects Bitcoin to hit $500,000 if a strategic reserve is established by the US government.
Trump delivering his keynote address during the Bitcoin 2024 event in Nashville Tennessee. Source: Cointelegraph
Related: Galaxy set for more gains after 25% rise on Trump win: Analyst
Bitcoin to $500,000 once the sovereign HODL race starts
Novogratz clarified his statements by asserting that if the Bitcoin Strategic Reserve were to be established in the United States, it would trigger a BTC arms race between sovereign powers. The CEO stated:
"I think Bitcoin heads to $500,000 — it's a whole different Paradigm because it forces every other country [to buy it], and countries are already buying it."
El Salvador became the first country in the world to legalize Bitcoin as legal tender in 2021, and under the direction of President Nayib Bukele, continues to accumulate more of the scarce digital currency regularly.
El Salvador’s Bitcoin holdings. Source: Arkham Intelligence
The Kingdom of Bhutan has also been quietly mining Bitcoin for years. In September 2024, Arkham Intelligence revealed that Bhutan held approximately $780 million in digital assets.
Both countries have seen their Bitcoin holdings surge during the most recent rally, with El Salvador experiencing nine-digit gains and Bhutan's total crypto holdings topping the $1 billion mark.
Magazine: Bitcoin $500K prediction, spot Ether ETF ‘staking issue’— Thomas Fahrer, X Hall of Flame