Cryptocurrency bull: If Trump really establishes a Bitcoin reserve, $500,000 is in sight!

Billionaire executive Michael Novogratz of cryptocurrency investment firm Galaxy Digital stated that the likelihood of the U.S. establishing a Bitcoin strategic reserve as proposed by President Trump is very low.

"I still think the chances are low," Novogratz said in an interview with Bloomberg Television on Wednesday. "Although the Republicans control the Senate, they don't have close to 60 seats." He also suggested:

"I think it would be wise for the U.S. to utilize the Bitcoin it has, perhaps even add some, and show the world that it will become the number one country in global technology and digital assets... I don't think the dollar needs anything to back it."

Trump stated at a Bitcoin conference in July that once he becomes president, the U.S. would retain all Bitcoin held or to be acquired by the government, turning "massive wealth into a permanent national asset that benefits all Americans." Other supporters suggested that the U.S. should purchase about 1 million Bitcoins, which, based on current cryptocurrency prices, would be valued at over $90 billion.

If the U.S. really established a Bitcoin strategic reserve, Novogratz predicted that the price of the world's largest cryptocurrency would soar to $500,000. Bitcoin's trading price has already reached a historic high of over $93,000.

"If the U.S. establishes a Bitcoin strategic reserve, as someone who owns a lot of Bitcoin, I wouldn't be upset," Novogratz said. "I think Bitcoin will rise to $500,000. This is a different paradigm because it forces all other countries to join in."

Trump's significant victory in last week's presidential election propelled Bitcoin, the leader of the cryptocurrency market, to rise over 30%, pushing the overall market value of digital assets above its peak during the pandemic. Trump was a skeptic of cryptocurrencies during his first term but has since become a vocal advocate, with his family even launching a decentralized finance project.

Novogratz, a former partner at Goldman Sachs and Fortress Investment Group, saw his net worth soar to about $5.4 billion this week, an increase of $3.8 billion since the end of 2022. Following Trump's victory, his digital asset company recorded its best trading day of the year on November 6.

As a long-time supporter of the Democratic Party, Novogratz criticized Massachusetts Senator Elizabeth Warren's remarks on X earlier on Wednesday, where Warren slammed Trump's announcement that billionaire Elon Musk and entrepreneur Vivek Ramaswamy would lead a new government efficiency department. The department's acronym is DOGE, one of Musk's favorite internet memes, and shares its name with the cryptocurrency he strongly promotes.

Warren has been a vocal critic of cryptocurrencies and has become a favorite target of complaints from industry participants