Novogratz: Bitcoin Reserve ‘Very Big Deal’

Galaxy CEO Mike Novogratz has commented on the establishment of a strategic Bitcoin reserve, arguing that it is a “very big deal.”

The fact that the U.S. now has a Bitcoin reserve will “send a message” to every country, according to Novogratz.

Blockstream CEO Adam Back, who is known for being cited in Satoshi Nakamoto’s whitepaper, echoed a similar sentiment in his own social media post. Back argues that the reserve announcement is “huge” for moving the Overton window. He has added that it adds a “new ultimate reference for sovereign wealth funds, pension funds, mutual funds to add bitcoin allocations.”

As reported by U.Today, Bitcoin actually plunged lower following the announcement. The market was seemingly underwhelmed by the fact that the reserve would be comprised of only forfeited coins.

That said, there is some room for potentially buying more cryptocurrencies. “My guess is they will find a way,” Novogratz said.

It is worth noting that Novogratz previously argued that the idea of backing up the U.S. dollar (the reserve currency of the world) with other assets was “counterintuitive.”

$500,000 price prediction

As reported by U.Today, the cryptocurrency mogul predicted that the price of Bitcoin could potentially reach $500,000 if the U.S. were to create a Bitcoin reserve, given that it would kick off a domino effect, with other countries following suit.

Bitcoin is currently trading at $85,728, failing to revive bullish momentum despite being fully endorsed by the U.S. government.

Novogratz has opined that Bitcoin would need to reclaim the $91,000 for the bulls to get back on track.

The crypto billionaire has added that he is “very bullish” in the medium and long term.

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