Bitcoin and Gold in Focus as Novogratz Predicts a Minsky Moment for the Economy

Mike Novogratz on America’s Financial Fault Line: Bitcoin, Debt, and the Return of Risk

The U.S. may be approaching a dangerous economic threshold, according to Galaxy Digital CEO Mike Novogratz. In a wide-ranging CNBC interview, Novogratz warned that a “Minsky Moment”—the sudden unraveling of a prolonged period of financial stability—could be closer than policymakers realize.

“Markets are waking up to the reality that the U.S. can’t borrow forever without consequences,” he said. “This isn’t business as usual anymore.”

With interest rates climbing and the dollar weakening simultaneously, Novogratz likened the current trajectory of the U.S. to that of an emerging market teetering on the edge. He attributed the instability not just to economic fundamentals, but also to rising geopolitical tensions and the reemergence of Donald Trump, which has injected fresh volatility into an already fragile system.

Equities have dropped nearly 10% this year, but Novogratz believes that’s just the beginning. “Risk appetite is fading fast,” he said. “The correction we’ve seen doesn’t yet reflect the scale of the shift happening beneath the surface.”

Amid the turbulence, bitcoin has found renewed purpose. Novogratz highlighted two driving forces behind BTC’s recent strength: macro uncertainty pushing capital toward alternative stores of value, and a slow but steady adoption curve that’s starting to decouple crypto from broader market trends. He noted that bitcoin is increasingly moving on its own terms, no longer just a high-beta tech trade.

“Bitcoin and gold are the canaries in the coal mine,” Novogratz said. “They’re telling you everything you need to know about how investors view fiscal stewardship right now.”

Referencing economist Hyman Minsky, he suggested that the U.S. is at a juncture where deficits and debt finally begin to constrain policy options. With national debt above $35 trillion, even modest increases in Treasury yields are now translating into massive additional interest payments.

“A 25 or 50 basis point hike may not seem like much, but at these debt levels, the cost is staggering,” he said. “We could soon be spending more to service our debt than we do on key federal programs.”

For Novogratz, the message from the markets is clear: the free pass on endless borrowing is expiring, and the financial world is recalibrating—fast.