Mike Novogratz on Trump’s Bitcoin Reserve Announcement

Billionaire investor and Galaxy Digital CEO Mike Novogratz provided his insights on US President Donald Trump’s historic announcement regarding the US Strategic Bitcoin Reserve and Cryptocurrency Stock.

Novogratz emphasized that Trump’s decision is historic and that establishing a U.S. Bitcoin reserve sends a strong message to other nations. He stated, “Having a BTC reserve sends a message to every country. This is a huge deal.” This move indicates that the U.S. acknowledges Bitcoin’s significance as a strategic financial asset, which could have extensive geopolitical and economic implications.

In addition to the Bitcoin reserve, Novogratz underscored the effects of regulatory changes that permit banks to engage in the crypto ecosystem. He remarked, “Allowing banks to participate will greatly increase institutional adoption. That could be more important than the reserve.” Integrating traditional financial institutions into the crypto space may speed up mainstream adoption, leading to enhanced liquidity and stability.

A key takeaway from Novogratz’s analysis is that the Treasury Department has recognized dollar-backed stablecoins as a mechanism to safeguard the dollar’s status as the global reserve currency. He noted, “Hearing the Treasury Secretary talk about the importance of dollar-backed stablecoins to ensure that the dollar remains the world’s reserve currency tells me that we have a team that understands that. It’s very bullish.”

Despite his overall positive outlook, Novogratz acknowledged challenges facing the crypto market in 2025. He pointed to the enthusiastic fourth rally of 2024, which peaked during the presidential inauguration and caused an overheated market. He highlighted several factors contributing to the current price stagnation:

• The lack of a new transformative Web3 application driving mainstream adoption.
• The collapse of the memecoin craze, especially TRUMP Coin.
• A shift in global investment flows, with Chinese tech stocks like Alibaba outperforming crypto assets.
• A sell-off in US stock markets as investors pivot to Chinese and European markets.

Novogratz shared his thoughts on Bitcoin’s price trajectory, noting that it needs to reclaim $91,000 to gain upward momentum, while currently trading between $75,000 and $90,000. He stressed that individual investor participation is vital for a broader market recovery, stating, “The rest of crypto needs an army of individuals. What I know is, every time you think they’re gone, they come back. We need to see that for the market to turn around.”

He expects Ethereum (ETH) to find support at $2,000, which is critical for sustaining confidence in the broader altcoin market.

Despite short-term market fluctuations, Novogratz maintains a bullish outlook for the medium to long term.

> Disclaimer: This is not investment advice.