Crypto’s era of outsized speculative gains may be drawing to a close as institutional investors replace retail traders seeking rapid returns, according to Galaxy Chief Executive Officer Mike Novogratz.
Speaking at the CNBC Digital Finance Forum in New York, Novogratz said the industry is maturing as risk-averse capital enters markets that were once dominated by high-risk speculation.
“Retail people don’t get into crypto because they want to make 11% annualised,”
Novogratz said, adding:
“They get in because they want to make 30 to one, eight to one, 10 to one.”
He pointed to the 2022 collapse of FTX and a subsequent 78% Bitcoin drawdown as a breakdown in trust, adding that a recent Oct. 10 leverage flush “wiped out a lot of retail and market makers” despite the absence of a clear catalyst.
“This time, there’s no smoking gun,”
He said, arguing that crypto narratives take time to rebuild once speculative capital exits the market.
Novogratz expects tokenised real-world assets to drive the next phase of growth by delivering steadier, lower returns, a view echoed by Chainlink co-founder Sergey Nazarov, who said RWAs could eventually surpass cryptocurrencies in total industry value.
While market dynamics and holder profiles are shifting, long-term Bitcoin believers will remain positioned if they continue to view the asset as a hedge against broader financial market instability, according to Lightspark Chief Executive David Marcus.
At the time of reporting, Bitcoin price was $66,694.70.