Economic Instability and Political Shift Fueling Bitcoin’s Rise – Galaxy Digital CEO

Mike Novogratz, the head of Galaxy Digital, believes the current state of the U.S. economy—and shifting attitudes in Washington—are creating ideal conditions for Bitcoin and the broader crypto market.

Speaking to Bloomberg, Novogratz pointed to a mix of institutional adoption and macroeconomic strain as key drivers behind the digital asset rally.

He credited BlackRock CEO Larry Fink’s public endorsement of Bitcoin as a turning point, calling it the moment when “Wall Street gave crypto its stamp of legitimacy.” Fink’s support, Novogratz said, encouraged a wave of institutional interest that validated Bitcoin as a serious asset class.

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But it’s the change in regulatory tone that he sees as unlocking even more momentum. According to Novogratz, the U.S. Securities and Exchange Commission’s previously aggressive stance under Gary Gensler has eased under the current administration, giving crypto firms more breathing room and igniting optimism across the industry. “That shift sparked a fresh wave of energy—not just in the U.S., but globally,” he noted.

Beyond politics, Novogratz pointed to deeper structural issues in the American economy. Mounting debt, a weakening dollar, and volatile bond markets have, in his view, added fuel to Bitcoin’s appeal. “When fiscal discipline erodes and traditional systems wobble, Bitcoin becomes an increasingly attractive hedge,” he said.

In short, a mix of institutional acceptance, favorable political winds, and economic pressure is setting the stage for what Novogratz sees as a continued rise in digital asset adoption.

Alexander Stefanov