Mike Novogratz, the billionaire founder and CEO of the crypto-focused asset manager Galaxy Digital (Nasdaq: GLXY), has sharply reacted to the rising federal debt of the U.S. government. The U
Mike Novogratz, the billionaire founder and CEO of the crypto-focused asset manager Galaxy Digital (Nasdaq: GLXY), has sharply reacted to the rising federal debt of the U.S. government.
The U.S. federal budget deficit jumped to $432 billion in July as receipts totaled $334 billion against outlays of $766 billion, Creative Planning's chief market strategist Charlie Bilello highlighted on X.
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In response, Novogratz wrote that it's only getting scary. He reminded the Treasury Secretary Scott Bessent's target of a 3-3-3 economy, i.e., 3% GDP growth, a budget deficit of 3% of GDP, and a daily increase of 3 million barrels in domestic energy production, is not being achieved right now.
Inflation over the last decade, coupled with the war, is directly related to the massive increase in debt, Novogratz argued.
As the government spends more than the revenue earned, it is forced to borrow money. As per the Treasury, the federal debt currently stands at $39.94 trillion.
"Incumbents on both sides will feel this in the mid terms," the billionaire warned both Democratic and Republican Party incumbents ahead of the November elections.
The Galaxy Digital founder further said that the government's failure to control its spending "addiction" is exactly why he is bullish on Bitcoin (BTC) despite the downturn in the crypto market right now.
Bitcoin maximalists have long argued that when the government runs out of money, it resorts to printing fiat currency. But as its supply increases, its purchasing power or value increases. In contrast, Bitcoin has a limited supply of 21 million coins and is bound to remain a valuable asset, the believers argue.
BTC/USD, Source: DecibelBitcoin, which hit the all-time high (ATH) of $126,080 on Oct. 6, 2025, is currently trading 50% lower at $63,070, as per Decibel. But the billionaire entrepreneur is bullish on the cryptocurrency.
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