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Bitcoin topping ninety thousand dollars for the first time ever. As the record rally continues and the rally kicked off by President elect Trump's victory last week ago. Today, one week to go. Today, we're going to bring in Crypto Bowl Mike Novogratz, Who's quot the most important thing to happen to digital assets in years joining us now, of course is Mike Novogratz. You know, Mike, when you think about just what has happened here just in crypto prices over the last couple of weeks is one thing. But I also want to get your view here into the larger view of things. We are getting many appointments. It's coming in rapid fire overnight. When you think about who the president elect wants to put around him, and you see, for example, Elon Musk and vi Veakwamaswami playing a role here at the end of the day, how does this all make you think differently about the policies you're going to see moving forward, How credible some of these policies can be moving forward, how you invest through them?

Bitcoin topping ninety thousand dollars for the first time ever. As the record rally continues and the rally kicked off by President elect Trump's victory last week ago. Today, one week to go. Today, we're going to bring in Crypto Bowl Mike Novogratz, Who's quot the most important thing to happen to digital assets in years joining us now, of course is Mike Novogratz. You know, Mike, when you think about just what has happened here just in crypto prices over the last couple of weeks is one thing. But I also want to get your view here into the larger view of things. We are getting many appointments. It's coming in rapid fire overnight. When you think about who the president elect wants to put around him, and you see, for example, Elon Musk and vi Veakwamaswami playing a role here at the end of the day, how does this all make you think differently about the policies you're going to see moving forward, How credible some of these policies can be moving forward, how you invest through them?

Listen, I think one thing is clear with Elon and Vivek.

Listen, I think one thing is clear with Elon and Vivek.

They want to cut some of the spending out of the government.

They want to cut some of the spending out of the government.

And so when I think of, you know, we have a six point seventy five trillion dollar budget of when you look at Medicare, social Security, and interest payments, that's fifty seven percent. If you throw a defense on top of it, you're like at seventy five percent, And so you only have twenty five percent to work with unless you're going to attack those those sacred spaces.

And so when I think of, you know, we have a six point seventy five trillion dollar budget of when you look at Medicare, social Security, and interest payments, that's fifty seven percent. If you throw a defense on top of it, you're like at seventy five percent, And so you only have twenty five percent to work with unless you're going to attack those those sacred spaces.

Right, Medicare social Security have always been third rails. The easiest thing is the pressure of the FED to cut rates.

Right, Medicare social Security have always been third rails. The easiest thing is the pressure of the FED to cut rates.

Right, every twenty five basis points of rate cuts saves twenty five billion dollars.

Right, every twenty five basis points of rate cuts saves twenty five billion dollars.

From your budget.

From your budget.

Now, think about how many hundred thousand dollars employees you need to cut out of the government to save twenty five billion dollars, Like quickly, do a calculator and do the math right. And so the biggest fix for the government would be to get short rates down so our funding costs. And I think the story they're going to tell is we're gonna we're gonna need monetary policy because we're going to be really good on fiscal We're gonna cut, cut, cut, Now, if that's the case, it's great for the stock market, it's great for America.

Now, think about how many hundred thousand dollars employees you need to cut out of the government to save twenty five billion dollars, Like quickly, do a calculator and do the math right. And so the biggest fix for the government would be to get short rates down so our funding costs. And I think the story they're going to tell is we're gonna we're gonna need monetary policy because we're going to be really good on fiscal We're gonna cut, cut, cut, Now, if that's the case, it's great for the stock market, it's great for America.

Uh, the proof will be in the putting. Can they cut right?

Uh, the proof will be in the putting. Can they cut right?

We know trubles to cut taxes to spur growth, but Kenny cuts spending and and he he never has in his career.

We know trubles to cut taxes to spur growth, but Kenny cuts spending and and he he never has in his career.

Well to that end too. Would you be a buyer of long bonds at this juncture or would you actually go short?

Well to that end too. Would you be a buyer of long bonds at this juncture or would you actually go short?

With that kind of doubt, I think you've got to sell the long end every rally you want to sell. Listen, because if if the things are working, the Fed's going to cut rates right again, this idea of how do you how do you cut interest rate costs down in the eil Kirk steevens and so, I just don't think there's.

With that kind of doubt, I think you've got to sell the long end every rally you want to sell. Listen, because if if the things are working, the Fed's going to cut rates right again, this idea of how do you how do you cut interest rate costs down in the eil Kirk steevens and so, I just don't think there's.

A whole lot of value in a world.

A whole lot of value in a world.

And listen, Bitcoin is telling you that gold, silver tells you that like the world is still worried. The only way you get out of thirty six trillion dollars of debt is to inflate it away. And you want to gracefully inflate it away. You can't have hyper inflation or you have chaos. Right, you want to run four percent inflation?

And listen, Bitcoin is telling you that gold, silver tells you that like the world is still worried. The only way you get out of thirty six trillion dollars of debt is to inflate it away. And you want to gracefully inflate it away. You can't have hyper inflation or you have chaos. Right, you want to run four percent inflation?

That's hard to do. But that's the goal, right.

That's hard to do. But that's the goal, right.

So Mike, it sounds like you're a bond bear, but you're a bitcoin bowl And I want to get back to crypto here, and I want to talk about the possibility of a bitcoin strategic reserve. You think about this rally that we're seeing in bitcoin, which is one of the purest supply and demand markets, and one of the reasons I keep hearing is that there's a lot of optimism that we could see the United States government buy up to a million worth of bitcoin. Now that you do have all these crypto advocates in Congress, are you confident that we could see something like that?

So Mike, it sounds like you're a bond bear, but you're a bitcoin bowl And I want to get back to crypto here, and I want to talk about the possibility of a bitcoin strategic reserve. You think about this rally that we're seeing in bitcoin, which is one of the purest supply and demand markets, and one of the reasons I keep hearing is that there's a lot of optimism that we could see the United States government buy up to a million worth of bitcoin. Now that you do have all these crypto advocates in Congress, are you confident that we could see something like that?

I still think it's a low probability, right. You know how Congress works. The House gets excited or the executive gets excited, in the Senate says calm down, right, that's the role of the Senate. And while the Republicans control the Senate, they don't.

I still think it's a low probability, right. You know how Congress works. The House gets excited or the executive gets excited, in the Senate says calm down, right, that's the role of the Senate. And while the Republicans control the Senate, they don't.

Have sixty seats. They don't have close to sixty.

Have sixty seats. They don't have close to sixty.

And so listen, I think it would be very smart for the United States to take the bitcoin they have and maybe add some to it and say we want to show.

And so listen, I think it would be very smart for the United States to take the bitcoin they have and maybe add some to it and say we want to show.

The world that we're going to be.

The world that we're going to be.

A technology first country, a crypto digital asset first country. I don't necessarily think the dollar needs anything to back it up. We have the strongest military in the world, we have the dominant economy in the world, and the reserve currency we've earned, and to need to back up the reserve currency as counterintuitive. And so again, listen, if we get the bitcoin reserve, and as a guy that owns a lot of bitcoin, I will not cry, and if you see me crying, they'll be crocodile tears.

A technology first country, a crypto digital asset first country. I don't necessarily think the dollar needs anything to back it up. We have the strongest military in the world, we have the dominant economy in the world, and the reserve currency we've earned, and to need to back up the reserve currency as counterintuitive. And so again, listen, if we get the bitcoin reserve, and as a guy that owns a lot of bitcoin, I will not cry, and if you see me crying, they'll be crocodile tears.

I think bitcoin heads to five hundred thousand.

I think bitcoin heads to five hundred thousand.

Again, it's a it's a whole different paradigm because it forces every other country, and countries are already buying it. I've got a dear friend, the guy that actually turned me onto bitcoin in twenty thirteen, who's in the Mid East right now, and he said he's never seen anything like it. He's convincing more people to boy bitcoin in the three days he's been there than any time in his whole career. And their huge pools of capital, and so we're seeing something globally. When Trump advocated in Nashville that he was going to be a crypto president, a bitcoin president, and now he's the president. Let me tell you, other leaders heard that, and so I think we're strapping in for what could be an amazing rally.

Again, it's a it's a whole different paradigm because it forces every other country, and countries are already buying it. I've got a dear friend, the guy that actually turned me onto bitcoin in twenty thirteen, who's in the Mid East right now, and he said he's never seen anything like it. He's convincing more people to boy bitcoin in the three days he's been there than any time in his whole career. And their huge pools of capital, and so we're seeing something globally. When Trump advocated in Nashville that he was going to be a crypto president, a bitcoin president, and now he's the president. Let me tell you, other leaders heard that, and so I think we're strapping in for what could be an amazing rally.

I want to get back to your point on you know, hyperinflation, Mike, or at least more than four percent. I look at a longer term chart of bitcoin, say five years, and in that run up post or during COVID, I always see an inflation indicator here. I know that there was a lot of helicopter money that held out, as well as people being home with nothing to do, But to me, it was an indication that at least this community saw massive inflation coming and that was born out. Do you not see the most recent run up as the same sort of signal.

I want to get back to your point on you know, hyperinflation, Mike, or at least more than four percent. I look at a longer term chart of bitcoin, say five years, and in that run up post or during COVID, I always see an inflation indicator here. I know that there was a lot of helicopter money that held out, as well as people being home with nothing to do, But to me, it was an indication that at least this community saw massive inflation coming and that was born out. Do you not see the most recent run up as the same sort of signal.

Yeah, listen, so when the government's printing as much money as they I mean, the bitcoin narrative, the only narrative really for bitcoin is it's a hard asset in a world where you're going to debase fiat currencies. Like that's the story. Forget any other story. Like you know, when bitcoin they say, well, we're going to be level two's and we're going.

Yeah, listen, so when the government's printing as much money as they I mean, the bitcoin narrative, the only narrative really for bitcoin is it's a hard asset in a world where you're going to debase fiat currencies. Like that's the story. Forget any other story. Like you know, when bitcoin they say, well, we're going to be level two's and we're going.

To do n FTS on it. I always think that just confuses the story. Eyes glaze over. The story is digital gold.

To do n FTS on it. I always think that just confuses the story. Eyes glaze over. The story is digital gold.

It is a hard asset that's believed to be a hard asset by the people that participate in its community.

It is a hard asset that's believed to be a hard asset by the people that participate in its community.

And it's really hard.

And it's really hard.

In a world of populism, not just in the United States, all over the world for governments to not want to spend more, and every single government is spending more than they take in.

In a world of populism, not just in the United States, all over the world for governments to not want to spend more, and every single government is spending more than they take in.

Isn't that run up to five hundred thousand? I mean, if it happens in the short term without a strategic bitcoin reserve, it's going to mean six seven.

Isn't that run up to five hundred thousand? I mean, if it happens in the short term without a strategic bitcoin reserve, it's going to mean six seven.

Eight yeah, yeah, personal in faction.

Eight yeah, yeah, personal in faction.

Let me be really clear, I don't want it to happen in the short term unless there's a bitcoin strategic reserve, because that's a different story.

Let me be really clear, I don't want it to happen in the short term unless there's a bitcoin strategic reserve, because that's a different story.

Then it's just a scramble. It's a crazy scramble to get the hot commodity.

Then it's just a scramble. It's a crazy scramble to get the hot commodity.

If it would happen naturally, it means we're starting to have hyperinflation and then we start to lose civil society. Like in every country that you look at that experiences hyper inflation, the results are really crappy.

If it would happen naturally, it means we're starting to have hyperinflation and then we start to lose civil society. Like in every country that you look at that experiences hyper inflation, the results are really crappy.

Mike, You know, how soon do you get to five hundred thousand. That's kind of a stunning level to think about. But you know, we're probably going to hit one hundred thousand dollars this year if we keep on going at this rate.

Mike, You know, how soon do you get to five hundred thousand. That's kind of a stunning level to think about. But you know, we're probably going to hit one hundred thousand dollars this year if we keep on going at this rate.

Yeah, so listen, the total market cap of gold I think is like sixteen trillion, right, and so that's eight hundred thousand bitcoin.

Yeah, so listen, the total market cap of gold I think is like sixteen trillion, right, and so that's eight hundred thousand bitcoin.

So when does bitcoin become gold?

So when does bitcoin become gold?

Like there's a new gener that cares more about bitcoin than they care about gold. I'm turning sixty next week, and so I still own a bunch of gold.

Like there's a new gener that cares more about bitcoin than they care about gold. I'm turning sixty next week, and so I still own a bunch of gold.

I'm an old guy. But let me tell you, no forty.

I'm an old guy. But let me tell you, no forty.

Year olds on gold, no thirty year olds on And so as we see this generational shift, like bitcoin should match gold within five or ten years, and that gets you to eight hundred thousand. That's with current goal prices, I think gold's going higher.

Year olds on gold, no thirty year olds on And so as we see this generational shift, like bitcoin should match gold within five or ten years, and that gets you to eight hundred thousand. That's with current goal prices, I think gold's going higher.

I always fear, you know, Tom Keene, Yeah, every time he mentions bitcoin, he's making fun of it, literally every time for the past decade exactly. And I always wonder if you know, did tribal elders in prehistoric times also make fun of their kids for bringing gold into the tent.

I always fear, you know, Tom Keene, Yeah, every time he mentions bitcoin, he's making fun of it, literally every time for the past decade exactly. And I always wonder if you know, did tribal elders in prehistoric times also make fun of their kids for bringing gold into the tent.

Every month and a half, he has me on surveillance radio and just beats me up about bitcoin, which is painful. Mike, turning it back to you, first of all, happy early birthday. That's exciting. I do want to talk about galaxies approach, specifically to the ETF market when it comes to partnerships. I cover ETFs. I've watched you partner with Invesco, with State Street on different spot ETFs, but also these crypto equity ETFs. What is your thinking around partnerships. Why not just launched ETFs solely as Galaxy.

Every month and a half, he has me on surveillance radio and just beats me up about bitcoin, which is painful. Mike, turning it back to you, first of all, happy early birthday. That's exciting. I do want to talk about galaxies approach, specifically to the ETF market when it comes to partnerships. I cover ETFs. I've watched you partner with Invesco, with State Street on different spot ETFs, but also these crypto equity ETFs. What is your thinking around partnerships. Why not just launched ETFs solely as Galaxy.

And we're an institutional firm. We don't have giant retail salesforces, and those ETFs really end up being sold into the high net worth channels, right, and so we don't have an army of registered investment advisors, and so we partnered to rent those armies. Quite frankly, we think we've got knowledge in IP of this space and real understanding of it, and our partners you know, partner with us because of that. I think this State Street partnership is off to a great start. That the the they're just starting to market these equity funds, but the returns are.

And we're an institutional firm. We don't have giant retail salesforces, and those ETFs really end up being sold into the high net worth channels, right, and so we don't have an army of registered investment advisors, and so we partnered to rent those armies. Quite frankly, we think we've got knowledge in IP of this space and real understanding of it, and our partners you know, partner with us because of that. I think this State Street partnership is off to a great start. That the the they're just starting to market these equity funds, but the returns are.

Spectaculum, and we started. You could have had a better.

Spectaculum, and we started. You could have had a better.

Start date and so usually one, you know, an ETF has great returns in drowsing capitals.

Start date and so usually one, you know, an ETF has great returns in drowsing capitals.

So we'll see.

So we'll see.

Hey, Mike, you know I want to talk about the macro before we let you go a little bit more because we're talking about bitcoin and the run up. We talked about gold a little bit. The dollar in particular has had just a stunning run up. It's still up even more today. People are thinking that the dollar will really become much stronger under a significant tear off policy under Trump. But if you believe that the dollar, the dollar doesn't have as much value in the future. I mean, how do you think about this trade?

Hey, Mike, you know I want to talk about the macro before we let you go a little bit more because we're talking about bitcoin and the run up. We talked about gold a little bit. The dollar in particular has had just a stunning run up. It's still up even more today. People are thinking that the dollar will really become much stronger under a significant tear off policy under Trump. But if you believe that the dollar, the dollar doesn't have as much value in the future. I mean, how do you think about this trade?

Listen. You know.

Listen. You know.

There's that expression the tallest pigmy like again you look up north. You know, I bought dollar Canada in the last few few days. You know, the US economy is winning relative to Canada, relative to Europe, relative to China, and so I think the dollar is going to be strong, certainly through the end of the year, maybe further.

There's that expression the tallest pigmy like again you look up north. You know, I bought dollar Canada in the last few few days. You know, the US economy is winning relative to Canada, relative to Europe, relative to China, and so I think the dollar is going to be strong, certainly through the end of the year, maybe further.

With this Trump victory.

With this Trump victory.

You know, normally you go with the breaks after an election, and the markets are telling you the dollar is going to be strong, and quite frank, our economy is strong, right, we have a very strong economy.

You know, normally you go with the breaks after an election, and the markets are telling you the dollar is going to be strong, and quite frank, our economy is strong, right, we have a very strong economy.

I think one of the things that was kind of crazy is Biden.

I think one of the things that was kind of crazy is Biden.

And Harris they never really articulated how strong the economy was right. Sixty five percent of America thinks we're in a recession.

And Harris they never really articulated how strong the economy was right. Sixty five percent of America thinks we're in a recession.

We're absolutely not in a recession.

We're absolutely not in a recession.

We've got a booming economy with a booming thought market, with more job creation than in a four years in history almost and so what's happening, which is real was seventy percent of Americans didn't like the direction the economy is going. The gap between rich and poor still is creating such division in this country.

We've got a booming economy with a booming thought market, with more job creation than in a four years in history almost and so what's happening, which is real was seventy percent of Americans didn't like the direction the economy is going. The gap between rich and poor still is creating such division in this country.

It's creating that polarization and a lot of people still feel left behind.

It's creating that polarization and a lot of people still feel left behind.

We got to leave it there, unfortunately, but I hope we can get you back. Hopefully we can get you back in the studio when you're here in New York and Mike no regrets there.

We got to leave it there, unfortunately, but I hope we can get you back. Hopefully we can get you back in the studio when you're here in New York and Mike no regrets there.

From Galaxy Digital

From Galaxy Digital