Mike Novogratz, Galaxy Digital’s CEO, suggests Bitcoin’s recent rebound signals macroeconomic instability and a shift away from fiat currencies. He attributes this to unfolding geopolitical conditions, noting Bitcoin’s dual role as a hedge and risky asset. Retail participation has decreased despite institutional interest, with gold sales driven by foreign central banks. Novogratz also warns of the U.S. economy reflecting emerging market traits and hints at the potential emergence of a BRICS-backed currency.
Mike Novogratz, the founder and CEO of Galaxy Digital, indicates that Bitcoin’s recent recovery signifies more than mere speculation; it indicates a growing instability in the macroeconomic landscape and a transition in global financial structures. In an interview with CNBC, he linked Bitcoin’s (BTC) resurgence to broader geopolitical and fiscal trends, such as abrupt tariff announcements, increasing interest rates, and changing U.S. fiscal strategies.
This economic uncertainty invites a reconsideration of long-established financial and security frameworks dating back to the post-World War II era. Historically, Bitcoin tends to thrive under such macroeconomic instability, although Novogratz points out its dual role as both a geopolitical hedge like gold and a volatile asset dependent on investor sentiment. He noted, “Bitcoin broadly does well in these macro conditions unless there’s this kind of risk-off,” highlighting an absence of new investors during crises.
Despite steady institutional engagement, retail investment in Bitcoin has recently slowed. Novogratz observed a trend towards short-term trading rather than long-term accumulation in the BTC market. He stated, “Bitcoin and gold serve as report cards on financial stewardship,” reflecting deteriorating trust in fiat currencies. He noted that current gold demand primarily stems from foreign central banks rather than retail or institutional buyers.
Moreover, Novogratz anticipates that a currency backed by BRICS nations, potentially supported by gold, may emerge within the next 24 months, signifying a shift away from dependence on the U.S. dollar and Western financial systems. He further cautioned that the U.S. economy is increasingly resembling that of an emerging market, stating, “It’s in early stages and that should get us all nervous.”
He highlighted the paradox in striving for goals such as reducing inequality while jeopardising long-term economic stability. The complexity of dismantling three decades of established global trade systems and supply chains cannot simply be wished away, he asserted.
