Bitcoin (BTC) hit all-time price records during a 10-day bull run.
“I still think the probability is low,” Novogratz said because of the Republican minority in the Senate.
Michael Novogratz, CEO of Galaxy Digital, predicted that the price of bitcoin (BTC) could reach $500,000 if the US establishes a strategic reserve for the leading cryptocurrency. The position of Donald Trump, recently elected as US president, could be supported by Senator Cynthia Lummis’s proposal for a “Bitcoin Law”, which could redefine global policy on cryptoassets.
Novogratz’s opinion arose in a interview to Bloomberg Television, when discussing the potential impact of this measure:
I think bitcoin is heading to $500,000. It is a different paradigm because it forces all other countries to follow.
Michael Novogratz, CEO of Galaxy Digital.
As reported by CriptoNoticias, the price of bitcoin (BTC) surpassed the USD 90,000 mark 3 days ago, after Donald Trump was elected president. Now the speculation about The potential creation of a US BTC reserve appears to be influencing the price of the cryptocurrency, which has appreciated more than 30% since the elections, on October 6.
However, Novogratz also expressed doubts about the likelihood of the US creating a bitcoin reserve under the Trump administration, despite price forecasts. “I still think the probability is low,” he said, citing the lack of a significant Republican majority in the Senate.
Novogratz’s opinion could be biased in this sense, if we consider that currently 20 of 32 senators have expressed favorable ideas about cryptocurrencies, which could be seen as majority support from the Senate, beyond the partisan tint.
“I think it would be very smart for the United States to take the bitcoins that they have and maybe add something else and say ‘we want to show the world that we are going to be a country that prioritizes technology, a country that prioritizes digital assets and cryptocurrencies (… ) I don’t necessarily think that the dollar needs something to support it,” said the Galaxy Digital executive.
In July, Trump proposed the creation of a US strategic bitcoin reserve at the Bitcoin 2024 conference in Nashville, as CriptoNoticias reported. During his presidential campaign, the re-elected president emphasized that his administration will establish policies friendly to the cryptocurrency industry.
Trump’s promises are supported by some US senators, such as Cynthia Lummis, who in July proposed a “Bitcoin Law.” This law includes a plan to create a strategic bitcoin reserve that could reach 1 million bitcoins in five years, which would represent 5% of the total supply.
The plan represents a significant shift in the US approach to cryptocurrencies until now and is not without controversy, as both economists and legislators are currently debating the benefits and risks of such a policy, with arguments that focus on , mainly, in the volatility of the price of bitcoin.
