Mike Novogratz, CEO of Galaxy Digital, believes that if the U.S. establishes a strategic reserve in Bitcoin, its price could soar to $500,000. He shared this perspective during an interview with Bloomberg Television.

“If we get a Bitcoin reserve, as someone who owns a lot of coins, I won’t be crying. I think Bitcoin is headed toward $500,000,” Novogratz said.

The Concept of a Bitcoin Strategic Reserve

The idea of creating a national strategic reserve of “digital gold” to bolster the U.S. dollar’s position was proposed by Donald Trump during his presidential campaign. Trump also pledged not to sell Bitcoin already held by the U.S. government or acquired in the future.

Other American politicians, such as Senator Cynthia Lummis and presidential candidate Robert F. Kennedy Jr., have also advocated for the creation of such a reserve.

Doubts About Implementation

Despite his optimism, Novogratz expressed skepticism about the feasibility of establishing a Bitcoin reserve under Trump’s administration. He noted that the entrenched dominance of the U.S. dollar and resistance from traditional institutions could hinder its realization.

“It would be a smart move for the U.S. to use the Bitcoin it already has, perhaps buy more, and show the world its commitment to being a leader in technology, cryptocurrencies, and digital assets. I don’t think the dollar needs any help,” Novogratz added.

Impact on the Global Market

If the idea of a strategic Bitcoin reserve is implemented, it could spark a “digital arms race,” with other nations aggressively acquiring Bitcoin to bolster their own reserves.

Currently, the U.S. government holds approximately 200,000 BTC, equivalent to around 1% of all circulating coins.

Previous Opinions

Analysts at CoinShares have previously emphasized the importance of creating a Bitcoin reserve under Trump’s administration, highlighting its potential to solidify the role of cryptocurrencies in the global market.