Posted 1 year ago | by @devadmin

Galaxy Digital CEO Mike Novogratz has said that Bitcoin will become a “report card” to gauge how well a government is doing with its fiscal policy.

Novogratz made the comments during an interview with CNBC’s Squawk Box, stating that “Bitcoin will become a report card for how citizens think the government is doing managing their finances.”

Mike Novogratz additionally stated that Bitcoin’s latest ‘weekend’ price action which saw the digital asset surge above $60,000 to only dip down to around $55K, was all retailer activity:

“What happens on the weekend is retail gets excited you can tell because the cost of leverage goes way up on the weekend,” Novogratz said.

He further explained that Bitcoin’s price surge may even be correlated to President Biden’s proposed $1.9 trillion stimulus package, which recently received approval by U.S. lawmakers. According to the former Goldman Sachs asset manager, several Americans will use stimulus checks to purchase the crypto asset, but even more so young people.

“A lot of the stimulus checks are going to young people who want to buy Bitcoin,” Novogratz added.

Reiterating his earlier opinion that Bitcoin is an institutional product, Novogratz reminded investors that over the past three or four months, Bitcoin has officially turned into an asset class. A comment that ARK Invest’s Cathie Woods has also stated, that Bitcoin should be considered a new asset class, one that may even serve as a reserve currency in the future, Market Watch reported.

“You think about the traditional 60/40 stock-bond portfolio, but look what’s happening to bonds right now. If we are ending a 40-year secular decline in interest rates, that asset class has done its thing. What’s next? We think crypto could be the solution,” Wood, said.

Novogratz also added that Bitcoin was not just being explored by companies alone as banks and hedge funds will also want to add the number one digital asset to their balance sheets.

Galaxy Digital holds more than 16,000 BTC in the company treasury reserve, the third-largest firm to hold Bitcoin, after MicroStrategy and Tesla. Watch Novogratz explain why Bitcoin will become the government’s report card in the video below provided by CNBC.

Bitcoin is currently trading at [FIAT: $55,815.71] DOWN -1.0% in the last 24 hours according to Coingecko at the time of this report.