2024 has proven to be a remarkable year for Bitcoin [BTC], with prices rallying up before the halving event. On the contrary, historical patterns indicate a bullish trajectory for the cryptocurrency post-halving.
On the 29th of March, Mike Novogratz, the CEO of Galaxy Digital, spoke at the Bitcoin Investor Day in New York about the dire condition of the United States (US) debt deficit and its impact on Bitcoin.
Remarking on the same, Novogratz noted,
“If you take the congressional budget officers’ predictions, in 25 years it has debt to GDP at 250%. That is the recipe for housing prices going higher, Bitcoin going higher, gold going higher, silver going higher.”
Factors influencing Bitcoin’s rise
Addressing the same he suggested significant government spending cuts and higher taxes on the wealthy to curb the escalating US debt deficit.
With the national debt surpassing $34 trillion and growing rapidly, Novogratz highlighted the importance of investing in assets like Bitcoin to hedge against the mounting debt burden.
“In places with terrible stewardship of economies, Bitcoin should be a human right.”
Novogratz also linked the US fiscal challenges to Bitcoin’s appeal as an investment. Noting Bitcoin’s capped supply of 21 million units against dollar inflation, he exclaimed,
“Bitcoin is a macro asset.”
He further noted,
“I would rather have Bitcoin go up slowly than go to a million overnight because that would make us all wealthier, we will lose civil society.”
Can the US fiscal deficit be fixed?
Additionally, he also mocked the two US Presidents, Donald Trump, and Joe Biden for increasing fiscal deficit and their stance on Central Bank Digital Currency (CBDC), he noted,
“It is insane that our government hasn’t propagated a dollar-based stablecoin.”
In conclusion, with Bitcoin’s price reaching $69,867.14 and experiencing a slight dip of 0.735 in the last 24 hours after touching the $70,000 mark, the significance of its halving event and capped supply cannot be understated.
All in all, Mike Novogratz’s insights highlight the importance of considering these features, especially in light of the fiscal challenges facing the United States.
