Countries Are Buying Bitcoin ‘In Huge Volumes’, Says Mike Novogratz

Mike Novogratz, the founder and CEO of Galaxy Digital Holdings, a leading crypto investment firm, has revealed that nations around the world are actively purchasing Bitcoin in significant volumes. In a recent post on X (formerly Twitter), Novogratz emphasized that global Bitcoin adoption is accelerating at an unprecedented scale, and the next market rally could be monumental.

Nation-State Bitcoin FOMO Is Real

Novogratz highlighted that Bitcoin is seeing massive capital inflows from sovereign entities. “Countries are already buying BTC in huge volumes. These are massive pools of capital entering the market,” he tweeted. He continued, warning that the next Bitcoin rally could be one for the history books, urging investors to “buckle up.”

During a recent appearance on Bloomberg TV, Novogratz provided more details on this growing interest from nation-states. He mentioned a close associate who introduced him to Bitcoin back in 2013 and is currently in the Middle East. According to Novogratz, his associate has seen an extraordinary level of interest in Bitcoin in recent days. “He’s convincing more people to buy Bitcoin in three days than in his entire career,” Novogratz said, emphasizing that these are huge pools of capital.

Geopolitical Factors and Global Bitcoin Adoption

Novogratz also noted the influence of former President Donald Trump’s pro-crypto stance, which could be contributing to increased global interest in Bitcoin. Trump’s declarations that he aimed to be the “crypto president” and “Bitcoin president” have caught the attention of international leaders, Novogratz pointed out, suggesting that geopolitical dynamics could play a role in pushing the Bitcoin market to new heights.

Regarding the possibility of the U.S. government establishing a Strategic Bitcoin Reserve under a Trump presidency, Novogratz expressed cautious optimism. He acknowledged that while the executive branch and House of Representatives may be favorable toward Bitcoin, the Senate could prove more resistant due to its legislative processes. “I still think it’s a low probability,” he remarked, noting the difficulty in passing such an initiative without significant bipartisan support.

Bitcoin's Potential Impact on the U.S. Dollar

Novogratz suggested that it would be wise for the U.S. to embrace Bitcoin strategically, potentially by acquiring more of the cryptocurrency. He believes such a move would signal a commitment to being a “technology-first country, a crypto and digital asset-first country.” However, Novogratz clarified that he doesn't believe the U.S. dollar requires backing by Bitcoin. He did add that if the U.S. did establish a Strategic Bitcoin Reserve, Bitcoin’s value could skyrocket to $500,000.

Novogratz also warned that such a scenario could indicate hyperinflation, which historically leads to economic instability. “In every country that experiences hyperinflation, the results are really crappy,” he cautioned, adding that if such a shift occurs without a reserve, it could take six to eight years for Bitcoin’s value to surge, sparking a scramble for the digital asset.

Bitcoin vs. Gold: A Generational Shift in Value Storage

Discussing Bitcoin’s long-term potential as a store of value, Novogratz compared it to gold, traditionally seen as the ultimate hedge against inflation. The total market cap of gold is around $16 trillion, which would translate to a Bitcoin price of approximately $800,000 if Bitcoin were to reach gold’s market value. Novogratz believes that over the next five to ten years, Bitcoin could eventually match gold in terms of market capitalization.

While Novogratz, who is turning 60 next week, still holds gold, he pointed out a shift in generational investment preferences. “Forty-year-olds own no gold. Thirty-year-olds own none,” he observed, suggesting that younger generations are increasingly gravitating toward Bitcoin rather than traditional assets like gold. He believes this generational change will lead Bitcoin to rival gold, pushing its price closer to $800,000 in the coming years.

At the time of writing, Bitcoin (BTC) is trading at approximately $93,000.

Stay tuned for more updates on Bitcoin’s growing adoption and its potential future impact on the global economy.