The upcoming US presidential election could have a significant impact on the trajectory of bitcoin, according to Mike Novogratz, CEO of Galaxy Digital.
During a recent earnings call, Novogratz suggested that bitcoin may see movement out of its current consolidation phase as political dynamics shift.
He emphasizes that until more Democrats soften their stance on digital assets, the space is likely to remain politicized, indicating that changes in administration could influence regulatory decisions.
According to Novogratz, bitcoin’s price could continue to trade within the range of $55,000 to $75,000 in the near future. He states:
“I think that’s probably where we are — certainly for this quarter and maybe next quarter — until either the Fed starts cutting rates because the economy finally slows or we get through the election.”
Novogratz cited the recent approval of spot Bitcoin ETFs and last month’s block reward halving as factors contributing to this price stability.
Recent statements from the Biden administration have been perceived by the Bitcoin industry as negative for price action. One example being the indication to veto a resolution invalidating the SEC’s Staff Accounting Bulletin 121, which requires custodians to report liabilities and corresponding assets on their balance sheets for all the digital assets held.
Moreover, the recent crackdown on popular Bitcoin privacy services and the arrest of the founders of Bitcoin mixer Samourai Wallet have also forced the bitcoin community to raise concerns about stifling innovation.
Novogratz criticized the Biden administration’s stance, stating that it appeared to be a rejection of digital assets. He noted that despite there being Democrats who support bitcoin, key figures like Elizabeth Warren and Gary Gensler have been influential in shaping the party’s negative stance.
The recent House of Representatives’ approval to reverse SAB 121, with significant support from Republicans and some Democrats, signals a growing divide. The resolution now moves to the Senate, where Novogratz sees it as a litmus test for Democrats’ digital asset stance.
Novogratz emphasized the importance of bipartisan cooperation for the bitcoin industry’s success. He highlighted the need for both Republicans’ and Democrats’ support to create a stable regulatory environment. He stated:
“There was a shift in the Twitter space; there was a shift in people I spoke to […] I think that’s kind of dangerous thinking […] for our industry to thrive, you’re going to need bipartisan support.“
