#Crypto's Age of Speculation Ending, Says #Galaxy CEO


Mike Novogratz, CEO of Galaxy, stated that crypto's era of outsized gains may be coming to an end as institutional players replace retail investors seeking rapid returns. He made the remarks Tuesday at the CNBC Digital Finance Forum in New York.


Novogratz explained that retail participants typically enter Crypto hoping to achieve returns of eight to one, 10 to one, or 30 to one, not the 11% annualized returns that institutions might accept. The shift reflects the maturing industry, he noted.


He referenced the 2022 FTX collapse, which triggered a breakdown in trust and sent $BTC prices down 78% from $69,000 to $15,700 by November that year. The event marked a significant turning point for market sentiment and participant behavior.


Novogratz also discussed the Oct. 10 #leverage flush, describing it as a major event that eliminated many retail traders and market makers while increasing selling pressure. Unlike previous crashes, this downturn lacked a clear catalyst, he observed.


The Galaxy CEO emphasized that crypto #markets operate on narratives and stories that take time to build and attract participants. When those participants get wiped out, recovery does not happen immediately, he explained.


Novogratz expects the industry to transition from high-return speculation toward practical applications like tokenized real-world assets offering steadier returns. These #RWA applications will use crypto rails to deliver banking and financial services globally, he stated.

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February 11, 2026 at 12:56 PM
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