Mike Novogratz, founder and CEO of Galaxy Digital, has reiterated his confidence in Bitcoin, citing the ongoing fiscal deficit in the United States as a key driver for his bullish stance on the cryptocurrency.
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AAPLDeficit concerns and Bitcoin outlook
Novogratz addressed the issue on X, responding to comments from Charlie Bilello, an investor and market commentator who highlighted concerns about the scale of America’s fiscal shortfall. Bilello noted that, in July, the federal government collected $334 billion but spent $766 billion, resulting in a $432 billion deficit for the month.
Novogratz described the situation as “scary,” emphasizing the urgent need for a shift in the country’s fiscal policy. He pointed to the so-called “3-3-3” framework that aims for 3% real economic growth, a deficit equal to 3% of GDP, and an increase in oil production by 3 million barrels per day. Novogratz credited Treasury Secretary Scott Bessent for promoting this strategy, but acknowledged, “Unfortunately we aren’t even close to that.”
“The government’s inability to deal with its spending addiction keeps me bullish BTC even in a year where the energy in the crypto space is low.”
Galaxy Digital is a financial services and investment management company focused on the digital asset and blockchain technology sector. The firm, led by Novogratz, offers trading, asset management, and advisory services within the crypto industry.
Projections and potential market impact
Long-term budget forecasts from the Congressional Budget Office (CBO) have further highlighted the scale of the fiscal challenge. The CBO projected in February that the federal budget deficit will reach $1.9 trillion in fiscal 2026. The agency also estimated that debt held by the public could hit 101% of gross domestic product (GDP) this year and climb to 120% by 2036 if current policies remain in place.
Latest CBO data shows the government had already racked up a $1.4 trillion deficit over the first nine months of fiscal 2026. Novogratz remarked, “At one point the bond market will force fiscal discipline,” underscoring the potential for external market pressures to drive policy changes.
| Fiscal Metric | Value (July) | CBO 2026 Projection | CBO 2036 Projection |
|---|---|---|---|
| Monthly deficit | $432 billion | N/A | N/A |
| Federal deficit (annual) | N/A | $1.9 trillion | N/A |
| Debt as % of GDP | 101% (2024) | N/A | 120% |
Fiscal policy, inflation, and cryptocurrency
Novogratz linked the persistent deficits to rising inflation across several sectors over the past decade. He argued that the massive increase in public debt is directly correlated with inflationary pressures.
He also suggested that the consequences of unchecked government spending could be felt across the political landscape, particularly by incumbents from both major parties ahead of the midterm elections.
Novogratz connected the government’s fiscal behavior with his confidence in Bitcoin, stating that, despite market sentiment, macroeconomic fundamentals keep his outlook positive for the leading cryptocurrency.
