Why It’s Easy to Convince People to Buy BTC in a Debt Crisis

In the face of a mounting U.S. national debt, Galaxy Digital CEO Mike Novogratz has sounded the alarm on the dire need for fiscal reforms. Through a series of social media posts on X last week, Novogratz highlighted the urgency of addressing the nation’s financial woes, which, according to him, bolster the appeal of bitcoin and similar assets. With the national debt surpassing $34 trillion and increasing by $1 trillion roughly every three months, the financial expert underscored the critical need for immediate action to avert a catastrophic economic downturn.

Novogratz’s call to action includes a bold proposition to slash government spending significantly. He advocates for not just reducing expenditures but also for increasing taxes on the wealthy and shutting down tax loopholes. According to him, these steps are crucial to steering the U.S. away from a disastrous “debt death spiral.” “It’s why it is so easy to convince people to buy BTC and other hard assets,” he added.

The rise in U.S. debt levels has, interestingly, paralleled an increase in interest in cryptocurrencies like bitcoin. Novogratz, a vocal supporter of bitcoin, points to this trend as evidence of growing concern over traditional economic stability. He has previously expressed confidence in bitcoin’s potential, predicting that its value could hit $100,000 within the year and stating it’s unlikely to dip below $55,000 again, echoing the S2F model predictions made by on-chain analyst PlanB. Novogratz’s optimism is fueled by what he describes as a “runaway momentum” in the cryptocurrency market, highlighted by the ongoing interest in spot bitcoin exchange-traded funds (ETFs) and a global demand for bitcoin that shows no signs of waning, as of this moment.

At time of writing, Bitcoin is moving hands at $69,625 according to CoinMarketCap data.