Novogratz Warns US Debt Crisis Could Force Fiscal Discipline, Boost Bitcoin

Galaxy Digital CEO Mike Novogratz has warned that the United States’ growing debt and persistent government spending could eventually force policymakers into fiscal discipline, while strengthening the long-term case for Bitcoin.

Novogratz shared his concerns on X while responding to investor and market commentator Charlie Bilello, who highlighted the size of the U.S. federal government’s latest monthly budget deficit.

According to Bilello, the government collected $334 billion in July while spending $766 billion, resulting in a $432 billion monthly deficit. Novogratz described the figures as increasingly alarming and argued that Washington urgently needs to change its fiscal trajectory.

He pointed to Treasury Secretary Scott Bessent’s “3-3-3” economic framework, which targets 3% real economic growth, a federal deficit equal to 3% of GDP and an increase of 3 million barrels per day in U.S. oil production. However, Novogratz said the country remains far from achieving those objectives.

The Congressional Budget Office projected in February that the U.S. federal budget deficit would reach approximately $1.9 trillion in fiscal 2026. The CBO also estimated that debt held by the public would equal 101% of GDP this year before climbing to 120% by 2036 if current laws remain largely unchanged.

More recent estimates underscore the continuing pressure on U.S. finances. The federal government accumulated a roughly $1.4 trillion deficit during the first nine months of fiscal 2026, according to CBO figures.

Novogratz predicted that financial markets could ultimately impose the discipline that policymakers have struggled to achieve, saying the bond market will eventually force action.

The billionaire crypto investor also linked rising government debt with inflation across multiple sectors over the past decade. He suggested that frustration over federal spending could affect incumbents from both major political parties during the midterm elections.

For Novogratz, the worsening U.S. fiscal outlook remains a key reason to stay bullish on Bitcoin. Despite relatively weak energy across the cryptocurrency market this year, he believes Washington’s inability to control spending continues to reinforce BTC’s long-term investment appeal.