Mike Novogratz, CEO of Galaxy Digital, dismissed predictions that Bitcoin could reach $1 million in the near term, warning that such a move could reflect a collapse of the U.S. economy rather than a success story for cryptocurrency.
Novogratz shared with Natalie Brunell on the Coin Stories podcast on Wednesday that: "Those who cheer for Bitcoin prices to reach a million dollars next year, I think, you guys, that price is only achievable if we are in such a dire situation domestically."
“I would prefer a lower Bitcoin price in a more stable America than the opposite.”
Novogratz: Bitcoin Acts as a Hedge When Currency Collapses
Novogratz explained that excessive currency devaluation often drives demand for alternative safe havens, and Bitcoin, often referred to as digital gold, becomes a hedge against economic instability.
However, he warned that such conditions would harm civil society.
His comments echo previous warnings from analysts who emphasize that parabolic price volatility often comes with instability. In July 2023, trader Scott Melker, known as the Wolf Of All Streets, told Cointelegraph Magazine: "The faster things unfold, the worse the world gets."
However, speculation about Bitcoin reaching $1 million by 2026 continues to spread. Arthur Hayes, founder of BitMEX, has repeatedly predicted that BTC could rise from $750,000 to $1 million within two years, and more recently proposed a target of $250,000 by the end of this year.
In addition to price forecasts, Novogratz also expressed concerns about the financial outlook of the United States. He criticized Treasury Secretary Scott Bessent, who was appointed under President Donald Trump, for failing to control the country's soaring national debt.
“Although I greatly value Scott Bessent and I think he is right, he is failing to adjust the debt-to-GDP ratio. The deficit will be higher, not lower,” he said.
Novogratz also warned about the rapid growth of Bitcoin treasury adoption, noting that Galaxy Digital receives about five calls a week from companies wanting to add BTC to their balance sheets.
He said: “At some point, that’s the feeling of a bubble when a taxi driver asks you about the company’s balance sheet.”
His comments come as increasing concerns grow that only a few corporate Bitcoin treasuries may survive, with venture capital firm Breed recently warning that many companies could face a "death spiral" if market conditions worsen.
Cryptocurrency Treasury Not Really Buying Cryptocurrency
An increasing number of public companies are raising hundreds of millions of dollars to build cryptocurrency treasuries, but one analyst noted that many companies are not actually purchasing digital assets from the open market.
According to reports, cryptocurrency analyst Ran Neuner stated that cryptocurrency treasury companies are acting more like a lifeline for those in the cryptocurrency industry rather than like buyers.
Instead of buying assets directly from exchanges, these companies often receive cryptocurrency contributions from current holders, in exchange for later shares traded at a huge premium on the public market.
Skepticism about the sustainability of cryptocurrency treasury trends is also increasing.
Last month, Glassnode's top analyst, James Check, raised concerns about the sustainability of the company's Bitcoin treasury strategy, arguing that easy profits may no longer be available for newcomers as the market matures.
This warning echoes recent comments from Matthew Sigel, head of digital asset research at VanEck, who has voiced concerns about the Bitcoin treasury management strategies adopted by some public companies.
