Galaxy CEO Mike Novogratz Predicts 'Monster Pool Of Capital' Into Bitcoin With Trump's 401(k) Crypto Plan

by Khyathi Dalal Benzinga Staff Writer

Zinger Key Points

Mike Novogratz predicts Donald Trump’s proposed executive order could unlock a massive influx of capital into Bitcoin and crypto markets.
He views Bitcoin as a macro hedge against runaway money printing and poor fiscal management worldwide.
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Galaxy Digital CEO Mike Novogratz believes President Donald Trump's proposal to allow crypto assets in 401(k) retirement plans could act as a catalyst for massive inflows into the market, especially into Bitcoin BTC/USD and Ethereum ETH/USD.

What Happened: In a CNBC Squawk Box interview on Thursday, Novogratz confirmed that crypto is in a clear bull market, driven by increasing mainstream access. "Enjoy it while it lasts," he said, noting that bull markets are inherently cyclical.

Trump's idea to permit crypto exposure in 401(k)s could “open the floodgates” for a “monster pool of capital” from both retail and institutional investors. Over time, Novogratz anticipates more leveraged crypto products and sophisticated investment vehicles entering the space.

Why It Matters: Novogratz emphasized that Bitcoin's true role is as digital gold — a store of value and hedge against poor monetary policy, not necessarily a medium of exchange. He warned of the risks from ongoing money printing, rising debt-to-GDP ratios, and global fiscal mismanagement, all of which support Bitcoin's long-term value proposition.

As long as governments continue expanding deficits, Bitcoin's appeal as a macro hedge will grow, Novogratz noted.

Also Read: Bitcoin, Ethereum, XRP, Dogecoin Turn Higher On Thursday – Strong Accumulation May Build Solid Support

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Ethereum Outlook

On Ethereum, Novogratz said its strength lies in its role as a base layer for decentralized applications and stablecoins. With more public companies offering Ethereum-linked products, investors are gaining exposure to staking, yield, and DeFi — driving institutional interest.

Stablecoins & Market Dynamics

Novogratz also pointed out that Circle CRCL is currently leading in the stablecoin space, though heavyweights like JPMorgan and PayPal could soon intensify competition. Stablecoins are central to crypto liquidity and global payments. He added that Coinbase benefits greatly from Circle's USDC, deriving nearly 50% of its USDC-related revenue from the partnership.

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