Galaxy Digital CEO Mike Novogratz believes Bitcoin’s recent rally isn’t just speculative—it signals deepening distrust in fiat currencies and traditional economic systems. Speaking on CNBC, he tied Bitcoin’s rise to global financial uncertainty triggered by shifting U.S. policies, rising interest rates, and a turbulent geopolitical climate.

Novogratz sees Bitcoin functioning like a hybrid between a risk asset and a geopolitical hedge, akin to gold. While macro instability typically boosts BTC, he warned that chaos can still scare off new retail investors. He noted a slowdown in long-term holding, with markets currently dominated by short-term trades.

Highlighting gold’s recent performance, Novogratz said foreign central banks—not institutions or individuals—are driving demand, showing eroding faith in fiat-backed systems. He also forecast the rise of a BRICS-backed currency within two years, potentially supported by gold, as a major challenge to U.S. dollar dominance.

In a stark critique, he said the U.S. economy is beginning to mirror that of an emerging market—marked by unstable policy moves and eroding structural integrity. While well-meaning policies aim to reduce inequality and deficits, Novogratz warned they may be undermining the long-standing financial order and global trust.