Mike Novogratz, a billionaire investor and CEO of Galaxy Digital, on Tuesday highlighted a surge in U.S. debt as a significant reason to trust in Bitcoin’s BTC/USD future.
What Happened: Novogratz on X emphasized America’s hefty daily interest bill on a national debt exceeding $34 trillion. “I can think of 34 trillion reasons to believe in BTC… America is spending over $2 billion every day on interest payments alone. That's over $83 million EVERY HOUR!!” he said.
Novogratz, back in April 2023, had mentioned his reluctance to see Bitcoin reach a valuation of $1 million too soon, citing it would indicate a phase of instability in the United States.
Data from the Treasury Department reveals a climb in the U.S. national debt, breaching significant thresholds over recent decades. It first exceeded $1 trillion in 1982 and continued its sharp rise, hitting $10 trillion in 2008. By 2017, another trillion was added. The debt continued to balloon, crossing the $30 trillion mark in the fiscal year 2022, and now stands at $34 trillion.
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Why It Matters: Novogratz pointed out the enthusiasm to invest in U.S. debt. “Traditionally, because we're the reserve currency, everyone will lend you money,” Novogratz explained, but he reflected on the changing circumstances stating, “the Russians [are] never going to lend money to the US again in the short run. The Chinese are worried about us, so they're buying less and less Treasuries.”
In November, MicroStrategy Inc., holding the record as the largest corporate accumulator of Bitcoin, augmented its cryptocurrency reserves. Under the leadership of CEO Michael Saylor, the company procured an additional 16,130 BTC for its treasury.
Following the announcement, Novogratz expressed his admiration for Saylor’s aggressive Bitcoin strategy. “Michael Saylor is a legend!!!”
Price Action: At the time of writing, BTC was trading at $49,419, a 1.12% decline over the past 24 hours, as per Benzinga Pro data.
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Photo by RISE on Flickr
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