Novogratz Says U.S. Debt Crisis Lifts Bitcoin

Bitcoin is pushing close to new highs, and Galaxy Digital’s CEO Mike Novogratz believes the broader economic climate in the United States is a major reason why. Speaking with Bloomberg, he outlined how both political shifts and market conditions have given digital assets new momentum.

Novogratz pointed to a mix of leadership and policy changes that have influenced institutional interest in Bitcoin. He credited BlackRock CEO Larry Fink for helping kick off the first wave of corporate adoption, calling his pivot a turning point.

Good to know

• Bitcoin reached a new all-time high of $111,746 today
• Galaxy Digital’s Mike Novogratz sees debt and inflation concerns as drivers
• Institutional support has increased since BlackRock backed Bitcoin

Novogratz explained, “It started with Larry Fink. When he got orange-pilled, the largest asset manager in the world said ‘this is a real asset,’ at least Bitcoin, that everyone should be a part of and lots of other companies… followed suit.”

But in his view, the real shift came with a more favorable stance toward crypto under the Trump administration. Novogratz suggested that the change in tone from U.S. regulators has encouraged more risk-taking. “That was kind of round one of institutions coming in. But really it was the shift of approach from the Gary Gensler SEC to this Trump Administration which has just embraced our industry, and that freed up the animal spirit, both here and abroad.”

At the same time, America’s mounting debt issues are adding fuel to Bitcoin’s appeal, according to Novogratz. He highlighted the weakening dollar and bond sell-offs as long-term catalysts. “We’re in a really hard position as a country… We have this kind of debt, yield curves are selling off everywhere, the dollar is under pressure, and that all is very good for Bitcoin and crypto assets as well.”

As Bitcoin now trades at $110,450 as per CoinMarketCap data, just below $111,746, a new all-time high made today, Novogratz’s comments reflect a growing belief that current macroeconomic trends may help drive further growth in the crypto space.