Novogratz: This Is What Keeps Me Bullish on Bitcoin

Mike Novogratz, the founder and CEO of Galaxy Digital, said the U.S. government's persistent fiscal deficits are keeping him bullish on Bitcoin, the flagship cryptocurrency.

He has predicted that Washington's persistent reluctance to rein in spending will result in forced fiscal discipline.

Frightening figures

Novogratz made the comments on X in response to investor and market commentator Charlie Bilello.

The latter recently took note of the scale of the U.S. government's latest monthly deficit.

Bilello said the federal government collected $334 billion in July while spending $766 billion. This resulted in an eye-popping $432 billion deficit for the month.

"This is getting scary," Novogratz wrote. He argued that the United States needs to reverse the trajectory of its finances and said Treasury Secretary Scott Bessent was right to focus on the so-called "3-3-3" economic framework (3% real economic growth, reducing the deficit to 3% of gross domestic product and boosting U.S. oil production by 3 million barrels per day). “Unfortunately we aren’t even close to that,” Novogratz said.

The Congressional Budget Office projected in February that the federal budget deficit would reach $1.9 trillion in fiscal 2026.