FameEX Hot Topics | U.S. Bitcoin Reserve Plan Could Drive Bitcoin to $500K

Michael Novogratz, CEO of Galaxy Digital, has forecasted that Bitcoin’s value could skyrocket to $500,000 if the U.S. establishes a strategic reserve for the cryptocurrency. In a Bloomberg Television interview, Novogratz, a well-known Bitcoin advocate, commented, “If we get the Bitcoin reserve, as a guy who owns a lot of Bitcoin, I won’t cry... I think Bitcoin heads to $500,000.” He believes that this move would create a new financial paradigm, compelling other countries to follow suit.

Bitcoin has recently reached an all-time high, and speculation about a U.S. Bitcoin reserve has already caused its value to increase by more than 30% since President-elect Donald Trump’s victory. Novogratz sees the reserve plan as a potential game-changer for Bitcoin’s price. However, despite his bullish outlook, he expressed doubts about the likelihood of the U.S. actually moving forward with such a reserve under Trump’s administration, citing the lack of a strong Republican majority in the Senate.

While Novogratz remains optimistic about Bitcoin’s future, he acknowledged the challenges in making the Bitcoin reserve a reality. He noted that the political landscape, especially without a significant Republican majority, could hinder the plan’s implementation. Nonetheless, he argued that it would be a smart move for the U.S. to accumulate Bitcoin and position itself as a technology-first, digital asset-first country, signaling leadership in the global cryptocurrency space.

The idea of a U.S. Bitcoin reserve gained traction after Trump proposed the concept at the Bitcoin 2024 conference in Nashville. He pledged to establish a national Bitcoin stockpile and implement crypto-friendly policies if re-elected. While the proposal has garnered interest from certain political figures, it remains controversial, particularly due to Bitcoin’s volatility.

In response to the growing debate, Senator Cynthia Lummis introduced the “Bitcoin Act,” which aims to have the U.S. government acquire up to one million bitcoins over the next five years—about 5% of the total supply. Although some economists question Bitcoin’s stability as a reserve asset, the proposal signals a significant shift in the U.S. government’s approach to digital currencies.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.