Will Trump Embrace Bitcoin? Galaxy Digital CEO Says ‘Low Probability’ – Here’s Why

Bitcoin Strategic Reserve Unlikely Under Trump, Says Galaxy Digital CEO Mike Novogratz

U.S. Government Unlikely to Embrace Bitcoin as a Strategic Reserve

Galaxy Digital CEO Mike Novogratz has cast doubts on the probability of President-Elect Trump establishing a Bitcoin strategic reserve. Speaking with Bloomberg TV, Novogratz argued that government resistance and the U.S. dollar’s dominance as a global reserve currency make a Bitcoin reserve improbable. The United States currently faces a nearly $36 trillion national debt, and Novogratz believes this debt cannot be resolved without currency devaluation. However, he asserts that a Bitcoin reserve is not the solution.

“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,” said Novogratz. “But I don’t necessarily think the dollar needs anything to back it up.”

Novogratz Predicts a Clash of Interests Within the U.S. Government

Novogratz outlined his belief that an internal clash between various government branches would hinder any move toward a Bitcoin strategic reserve. He emphasized that while Bitcoin could symbolize a forward-thinking, technology-driven America, the dollar’s dominance, bolstered by the world’s strongest military and largest economy, stands firm without digital asset support.

Bitcoin at $500,000? What It Could Mean for Global Finance

If a Bitcoin strategic reserve were to become a reality, Novogratz foresees massive repercussions. He boldly predicted that such a reserve could drive Bitcoin’s price to $500,000, fundamentally altering the landscape of global finance. A U.S. Bitcoin reserve, he suggests, would likely trigger an international Bitcoin arms race as other countries rush to accumulate BTC.

“I think Bitcoin heads to $500,000,” Novogratz stated, underscoring the paradigm shift that would ensue. “It forces every other country to buy it, and countries are already buying it.”

The Rise of Sovereign Bitcoin Adoptions: El Salvador and Bhutan

El Salvador, under President Nayib Bukele, became the first nation to legalize Bitcoin as legal tender in 2021. Since then, the country has steadily increased its Bitcoin holdings, which have surged significantly in value during recent rallies.

Bhutan, too, has quietly joined the ranks of Bitcoin adopters. In September 2024, Arkham Intelligence disclosed that the Kingdom of Bhutan held approximately $780 million in digital assets. Bhutan’s strategic involvement in Bitcoin mining has allowed the country to see a substantial boost in its crypto holdings, topping $1 billion in total value.

A Global Race for Digital Currency Reserves?

As the Bitcoin phenomenon continues to unfold globally, more countries may consider Bitcoin accumulation as a hedge against traditional economic uncertainty. Yet, Novogratz believes that the U.S., with its strong economic foundations, may remain hesitant. While Bitcoin advocates push for digital asset adoption, the resistance within government circles highlights the complex dynamics between national debt, currency devaluation, and global financial positioning.