Novogratz: Bitcoin Could Hit $500,000 if US Establishes Strategic Reserve

Should the United States establish a strategic reserve in Bitcoin, its price could reach $500,000, according to Mike Novogratz, head of Galaxy Digital.

“If we get a Bitcoin reserve, as someone who owns a lot of coins, I won’t be crying. I think Bitcoin is moving towards $500,000,” the investor commented on Bloomberg Television.

The proposal to create a national strategic reserve of digital gold to bolster the dollar’s position was suggested by newly elected US President Donald Trump during his election campaign. He also promised not to sell Bitcoins already owned by the government or those acquired in the future.

Similar initiatives have been proposed by other American politicians, including Senator Cynthia Lummis and then-presidential candidate Robert Kennedy Jr.

However, Novogratz doubts the creation of a strategic Bitcoin reserve during Trump’s tenure, citing potential opposition from governmental bodies. Moreover, he believes the dollar, as the currency of the nation with the strongest military and largest economy, does not require support.

“It would be a wise move for the US to use the Bitcoin it has, perhaps buy more, and show the world its intention to be a country where technology, cryptocurrencies, and digital assets are prioritized. I don’t think the dollar needs anything for support,” he added.

If the reserve is established, it could spark a new “arms race,” with governments worldwide actively purchasing Bitcoin.

The US government controls about 200,000 BTC — 1% of all coins in circulation.

Previously, CoinShares analysts shared their views on the prospects of creating a Bitcoin reserve under the Trump administration.