Michael Novogratz: Bitcoin Reserve Could Push Price To $500,000, But Likelihood Is Low

Galaxy Digital CEO Michael Novogratz on Wednesday discussed the prospect of Bitcoin BTC/USD reaching unprecedented price levels if adopted as a reserve asset by nations, although he acknowledged the probability of this scenario remains low.

What Happened: Novogratz, in an interview with Bloomberg said, "I think it would be very smart for the United States to take the Bitcoin they have and maybe add some to it."

However, he maintained that the possibility of such a strategic move is limited, particularly with a divided Congress.

If countries were to adopt Bitcoin as a reserve, Novogratz believes the impact on the asset's value could be immense, potentially driving its price up to $500,000.

He elaborated that a U.S. move to establish a Bitcoin reserve could lead other nations to follow suit, further fueling demand and contributing to a rapid increase in Bitcoin's valuation.

Also Read: A Dogecoin Strategic Reserve? One Company Is Working On it

With the rising interest in Bitcoin from both institutional and governmental levels, Novogratz highlighted the significant capital flowing into the market.

He noted that "huge pools of capital" are increasingly gravitating toward Bitcoin, with investors across the globe seeing the cryptocurrency as a hedge against inflation and currency devaluation.

In addition to his outlook on Bitcoin’s potential as a reserve asset, Novogratz commented on the broader market dynamics. With the U.S. government's $36 trillion debt burden, he pointed out that "the only way you get out of $36 trillion of debt is to inflate it away."

Bitcoin, positioned as "digital gold," offers an appealing alternative as a hard asset in such an inflationary environment, according to Novogratz.

What’s Next: For more insights into Bitcoin's evolving role in global finance and Novogratz’s perspectives, join Benzinga’s Future of Digital Assets event on Nov. 19, where industry experts will discuss the next catalysts shaping the crypto market.

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