Billionaire investor and Galaxy Digital CEO Mike Novogratz evaluated US President Donald Trump's historic announcement regarding the US Strategic Bitcoin Reserve and Cryptocurrency Stock.

Novogratz said Trump’s decision was historic, adding that the establishment of a U.S. Bitcoin reserve sends a strong message to other nations. “Having a BTC reserve sends a message to every country. This is a huge deal,” he said. The move signals that the U.S. is recognizing Bitcoin’s role as a strategic financial asset, which could have far-reaching geopolitical and economic consequences.

Beyond the Bitcoin reserve, the billionaire specifically highlighted the impact of regulatory changes that allow banks to participate in the crypto ecosystem. “Allowing banks to participate will greatly increase institutional adoption. That could be more important than the reserve,” he said. The integration of traditional financial institutions into the crypto space could accelerate mainstream adoption, paving the way for greater liquidity and stability.

One of the key takeaways from Novogratz’s analysis was that the Treasury Department has endorsed dollar-backed stablecoins as a tool to protect the dollar’s status as the global reserve currency. “Hearing the Treasury Secretary talk about the importance of dollar-backed stablecoins to ensure that the dollar remains the world’s reserve currency tells me that we have a team that understands that. It’s very bullish,” Novogratz said.

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Despite his long-term bullish outlook, Novogratz acknowledged the hurdles facing the crypto market in 2025. He cited the enthusiastic fourth rally of 2024 that peaked during the presidential inauguration and resulted in an overheated market. He also mentioned several factors contributing to the current price stagnation:

• The lack of a new transformative Web3 application that drives mainstream adoption.
• The collapse of the memecoin craze, especially TRUMP Coin.
• A shift in global investment flows, with Chinese tech stocks like Alibaba significantly outperforming crypto assets.
• A sell-off in US stock markets as investors turn to Chinese and European markets.

Novogratz provided insight into Bitcoin’s price trajectory going forward. He noted that Bitcoin needs to reclaim $91,000 to gain upward momentum, while the current trading range remains between $75,000 and $90,000. He also noted that individual investor participation is important for a broader market recovery. “The rest of crypto needs an army of individuals. What I know is, every time you think they’re gone, they come back. We need to see that for the market to turn around,” he said.

Meanwhile, he expects Ethereum (ETH) to find support at $2,000, a critical level to maintain confidence in the broader altcoin market.

Despite short-term market volatility, Novogratz maintains a bullish outlook for the medium to long term.

*This is not investment advice.

Continue Reading: Billionaire Investor Mike Novogratz Talks About The Cryptocurrency Market After Trump’s Statements: Still Mega Bullish?