- Galaxy Digital CEO Mike Novogratz said bitcoin's price will keep climbing amid high government spending.
- Trump and Biden both pushed spending beyond what's fiscally responsible, he said at a conference Friday.
Billionaire Mike Novogratz expects bitcoin to keep climbing due to a lack of fiscal discipline from the US government.
In a Friday interview at Reflexivity Research's Bitcoin Investor Day conference in New York, the Galaxy Digital CEO told moderator Anthony Pompliano that irresponsible leadership and reckless spending could be a long-term boon for the world's biggest cryptocurrency.
"What's the macro story for bitcoin?" Novogratz said. "It's relatively simple. Our government can't keep its pants on and stop spending money. That went from a problem in the early 2000s to a crisis with Donald Trump and Joe Biden. They go down as the two presidents who destroyed our fiscal stability."
Commentators have warned the high government spending is a threat as it ramps up the already rapid pace of borrowing and could further stoke inflation. Warnings over excessive government borrowing have been building as the national debt topped $34 trillion this year. Bank of America earlier this month noted that bitcoin investment was on the rise as a "debt debasement" trade as the US adds $1 trillion to the national debt every 100 days.
Novogratz — who said he first became interested in bitcoin when it was under $100 per token over a decade ago — explained that President Trump raised spending ahead of the COVID-19 pandemic.
That escalated once the pandemic began, then increased further when President Biden took office and pushed a number of new spending packages, the Galaxy chief said. Now, structural deficits have become normalized, he continued, with the government spending upwards of 25% of GDP.
"Until you see a government, both Dems and Republicans, that says 'enough,' bitcoin's going to keep going higher," Novogratz said.
On Friday, the price of bitcoin hovered at $63,000. It's gained 43% year-to-date, rallying on spot ETF demand and anticipation of the upcoming halving event expected in April.