FameEX Hot Topics | U.S. Bitcoin Reserve Proposal Could Propel Bitcoin to $500K

Michael Novogratz, CEO of Galaxy Digital, has predicted that Bitcoin’s value could soar to $500,000 if the U.S. establishes a strategic reserve for the cryptocurrency. During an interview on Bloomberg Television, Novogratz, a known Bitcoin advocate, stated, “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 such a move would force other countries to follow suit, creating a new financial paradigm. 

Bitcoin is currently at an all-time high, and recent speculation about a U.S. reserve has contributed to a 30% increase in its value since President-elect Donald Trump’s victory. Novogratz sees the reserve plan as a game-changer, potentially driving Bitcoin’s price up dramatically. However, despite his optimistic outlook, he voiced doubts about the feasibility of the U.S. actually establishing a Bitcoin reserve under Trump’s administration.

While Novogratz is bullish on Bitcoin’s future, he also expressed skepticism about the likelihood of the reserve coming to fruition. He acknowledged that with the lack of a significant Republican majority in the Senate, the plan’s chances remain slim. However, he argued that it would still be a smart move for the U.S. to accumulate Bitcoin and present itself as a technology-first, digital asset-first country, demonstrating leadership in the cryptocurrency space.

The proposal for a U.S. strategic Bitcoin reserve gained momentum after Trump presented the idea at the Bitcoin 2024 conference in Nashville. He promised to establish a national Bitcoin stockpile and implement crypto-friendly policies if re-elected. The idea has gained traction among some political figures, but it remains controversial, especially in light of Bitcoin’s volatility.

In response to the growing interest, Senator Cynthia Lummis introduced the “Bitcoin Act,” which calls for the U.S. government to acquire up to one million bitcoins over the next five years—roughly 5% of the total supply. While some economists and policymakers question Bitcoin’s stability as a reserve asset, the proposal represents a significant shift in the U.S. government’s approach to digital currencies.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.