Galaxy Digital founder and CEO Mike Novogratz says the U.S. government’s persistent fiscal deficits are a core reason he remains bullish on Bitcoin, even as broader crypto market energy feels subdued. Responding to investor Charlie Bilello on X, Novogratz described the latest federal budget figures as “scary” and argued that Washington’s spending trajectory will eventually force hard fiscal discipline.
Bilello highlighted that the federal government collected $334 billion in July while spending $766 billion, producing a $432 billion monthly deficit. Novogratz said Treasury Secretary Scott Bessent was right to focus on the so-called “3-3-3” economic framework: 3% real economic growth, cutting the deficit to 3% of GDP, and boosting U.S. oil production by 3 million barrels per day. But he added: “Unfortunately we aren’t even close to that.”
Novogratz tied the fiscal imbalance directly to inflation, saying price increases across many sectors over the past decade are correlated with the massive increase in debt. He also predicted that the bond market will eventually force fiscal discipline, and said incumbent politicians from both major parties could face consequences during the midterms.
The Congressional Budget Office projected in February that the federal budget deficit would reach $1.9 trillion in fiscal 2026. It also estimated debt held by the public would equal 101% of GDP this year and rise to 120% by 2036 if current laws remain largely unchanged. More recent CBO figures show the federal government accumulated a $1.4 trillion deficit during the first nine months of fiscal 2026.
“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,” Novogratz concluded.
