If the US creates a strategic reserve in bitcoin, its price will reach $500,000. This is what the head of Galaxy Digital Mike Novogratz believes.
"If we get a reserve of bitcoin, as someone who owns a lot of it, I'm not going to cry. I think bitcoin is headed to $500,000," the investor said on Bloomberg Television.
The proposal to create a national strategic reserve of digital gold to strengthen the dollar was voiced by the newly elected US President Donald Trump as part of his election campaign. He also promised not to sell bitcoins that the government already owns or will receive in the future.
Similar initiatives were proposed by other American politicians, including Senator Cynthia Lummis and then-presidential candidate Robert Kennedy Jr.
However, Novogratz is skeptical about creating a strategic Bitcoin reserve during Trump’s presidency: the initiative could be hampered by a standoff between government structures. In addition, in his opinion, the dollar — the currency of the country with the strongest army and the largest economy in the world — does not need support.
"It would be smart for the US to use the bitcoin it has, maybe buy more, and show the world that it intends to become a country that prioritizes technology, cryptocurrency, and digital assets. I don't think the dollar needs anything to support it," he added.
If the reserve is created, it could start a new “arms race” in which the authorities of many countries will begin to actively buy up Bitcoin.
The US government controls about 200,000 BTC, or 1% of all coins in circulation.
Earlier, CoinShares analysts shared their opinion on the prospects of creating a Bitcoin reserve under the Trump administration.
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