Persistent US fiscal shortfalls are sustaining bullishness toward Bitcoin (BTC) even as crypto market enthusiasm stays muted.
Galaxy Digital founder and CEO Mike Novogratz cites data from market strategist Charlie Bilello showing that the federal government took in $334 billion but spent $766 billion in July, resulting in a $432 billion deficit that month.
“This is getting scary. As a country, we need to turn this around. Sec Bessent was correct in targeting 3-3-3. Unfortunately we aren’t even close to that. War doesn’t help. A Congress that never says ‘no’ doesn’t help. At one point, the bond market will force fiscal discipline.”
Novogratz links the massive increase in debt directly to inflation across many sectors over the past decade.
“Inflation across so many sectors over the past 10 years is directly correlated to this massive increase in debt. Incumbents on both sides will feel this in the midterms.”
The Galaxy Digital executive believes the US government’s record-high debt will eventually contribute to a resurgence for BTC.
“It’s the govts inability to deal with its spending addiction that keeps me bullish BTC even in a year where the energy in the crypto space is low.”
Novogratz’s comments underscore how ongoing budget imbalances continue to support his long-term positive view on the leading cryptocurrency.
At time of writing, Bitcoin is trading for $63,416.
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