Countries Begin Large-Scale Bitcoin Purchases, Reports Galaxy Digital CEO

TLDR

• Multiple countries are buying Bitcoin in large volumes according to Mike Novogratz
• Trump’s “Bitcoin president” statement has attracted international attention
• Novogratz predicts Bitcoin could reach $500,000 with a US Strategic Reserve
• Current Bitcoin price stands at $93,000
• Younger generations prefer Bitcoin over gold as store of value

Mike Novogratz, CEO of Galaxy Digital Holdings, has revealed that several countries are currently purchasing Bitcoin in substantial amounts.

The announcement came through a post on X (formerly Twitter) on Tuesday, where Novogratz described “massive pools of capital entering the market.”

During a recent Bloomberg TV interview, Novogratz shared insights from a close associate currently in the Middle East. This associate, who first introduced Novogratz to Bitcoin in 2013, reported unprecedented interest from sovereign entities in the region.

According to Novogratz, his colleague has been able to convince more investors to buy Bitcoin in just three days than at any other point in his career.

Countries are already buying $BTC in huge volumes—these are massive pools of capital entering the market. We're witnessing global adoption at scale and the next rally could be massive. Buckle up

Caught up last week with @BloombergTV pic.twitter.com/s9UKQpGmXH

— Mike Novogratz (@novogratz) November 19, 2024

The interest in Bitcoin appears to have increased following former President Donald Trump’s statements in Nashville, where he expressed his intention to be a “crypto president” and “Bitcoin president.”

Novogratz noted that these declarations caught the attention of international leaders, potentially influencing their approach to cryptocurrency investments.

When discussing the possibility of a United States Strategic Bitcoin Reserve under a potential Trump presidency, Novogratz maintained a cautious stance. He rated it as a “low probability” event, citing the complexities of the American legislative process.

He pointed out that while the executive branch or House of Representatives might support such an initiative, the Senate typically acts as a restraining force.

The current political landscape in the Senate presents a particular challenge, as Republicans lack the 60-seat majority that would be needed to push through such legislation unilaterally. This political reality adds a layer of complexity to any potential national Bitcoin strategy.

Despite his skepticism about immediate implementation, Novogratz believes establishing a Strategic Bitcoin Reserve would be advantageous for the United States.

He suggested that such a move would demonstrate America’s commitment to being a technology-forward nation, particularly in the realm of digital assets and cryptocurrency.

In terms of price predictions, Novogratz stated that if a U.S. Strategic Bitcoin Reserve were established, Bitcoin’s value could reach $500,000. However, without such institutional backing, he estimates it would take “six, seven, eight years” to achieve similar price levels.

The Galaxy Digital CEO also addressed concerns about potential hyperinflation scenarios. Drawing from historical examples, he warned that countries experiencing hyperinflation typically face severe societal challenges. This observation adds context to the growing interest in Bitcoin as a hedge against inflation.

Novogratz highlighted an interesting generational divide in investment preferences. He noted that while he still owns gold at age 60, younger generations show little interest in the traditional precious metal. “Forty-year-olds own no gold. Thirty-year-olds own none,” he observed.

The total market capitalization of gold currently stands at approximately $16 trillion. If Bitcoin were to achieve parity with gold’s market cap, each Bitcoin would be worth around $800,000. Novogratz predicts this could happen within the next five to ten years, driven by the generational shift in investment preferences.

Looking at current market conditions, Bitcoin was trading at $93,000 at the time of reporting. This price point reflects the growing institutional and national interest in the cryptocurrency.

The Galaxy Digital CEO’s remarks come at a time of increased global attention on cryptocurrency markets. His observations suggest a shift in how nations view Bitcoin, moving from skepticism to active participation in the market.

National governments appear to be recognizing Bitcoin’s potential role in their financial strategies. This development marks a notable change from earlier years when cryptocurrency was primarily the domain of individual and corporate investors.

The movement of large pools of capital into Bitcoin markets indicates growing confidence in the cryptocurrency’s long-term viability. These investments from sovereign entities represent a new phase in Bitcoin’s evolution as a financial asset.

Reports from the Middle East suggest particularly strong interest in that region. The scale of potential investments from these sources could have substantial effects on Bitcoin’s market dynamics.

Current market data shows steady growth in Bitcoin’s value, reflecting these developments. The entry of national buyers into the market represents a new chapter in cryptocurrency adoption.