Bitcoin’s Role in Global Finance Strengthens After Trump’s Move, Says Mike Novogratz

Mike Novogratz, billionaire investor and CEO of Galaxy Digital, weighed in on Donald Trump’s groundbreaking decision to establish a U.S. Strategic Bitcoin Reserve.

He described the move as historic, emphasizing that it signals Bitcoin’s increasing importance on the global stage. According to Novogratz, having a national Bitcoin reserve sends a strong message to other nations, reinforcing the idea that BTC is now recognized as a strategic financial asset with long-term geopolitical and economic implications.

Beyond the reserve itself, Novogratz highlighted another critical shift: regulatory changes that permit banks to participate in the crypto ecosystem. He argued that this could be even more impactful than the reserve, as allowing traditional financial institutions to engage with crypto would accelerate institutional adoption, increase liquidity, and bring more stability to the market.

Another key development he pointed out was the U.S. Treasury Department’s endorsement of dollar-backed stablecoins. Novogratz believes this move is designed to reinforce the dollar’s position as the world’s reserve currency. He described the Treasury Secretary’s remarks as a clear sign that the government understands the importance of stablecoins in preserving U.S. financial dominance.

Despite his long-term optimism, Novogratz acknowledged the challenges facing the crypto market in 2025. He pointed to the overheated rally of 2024, which peaked during Trump’s presidential inauguration, as a factor contributing to the current price stagnation. He also noted several key reasons behind the market’s struggle, including the absence of a game-changing Web3 application, the collapse of the memecoin hype—particularly TRUMP Coin—the shifting of investment flows towards Chinese tech stocks like Alibaba, and a sell-off in U.S. stock markets as investors look to opportunities in Europe and Asia.

In terms of Bitcoin’s price outlook, Novogratz stated that BTC needs to reclaim $91,000 to regain upward momentum, while currently trading between $75,000 and $90,000. He also stressed the importance of retail investors in reviving the crypto market, pointing out that every time they seem to disappear, they eventually return. For broader market recovery, he believes retail participation is crucial. Similarly, he sees Ethereum’s $2,000 support level as a key benchmark for maintaining confidence in the altcoin sector.

Novogratz also touched on the potential global ripple effects of Trump’s Bitcoin reserve strategy, suggesting that other countries may follow suit in recognizing Bitcoin as a strategic asset. This shift could push governments to reconsider their approach to digital currencies, accelerating worldwide adoption.

Despite short-term volatility, Novogratz remains bullish on the future of crypto. While institutional adoption continues to grow, he believes the next major wave of excitement will come from new Web3 innovations and transformative blockchain applications, which could reignite investor enthusiasm and drive the next phase of growth.