Key Takeaways
- • Galaxy Digital CEO Mike Novogratz said at the CNBC Digital Finance Forum on Tuesday that crypto's "age of speculation" is ending and investors should expect "much lower returns" going forward.
- • Bitcoin has fallen roughly 50% from its October all-time high and the crypto market has lost about $2 trillion in value since October, per the source article.
- • Galaxy posted a fourth-quarter 2025 loss of $482 million, reflecting the impact of the downturn on the firm.
- • The October 10 crash wiped out $19 billion in leveraged positions over 24 hours and eroded retail traders' trust, according to Novogratz.
- • Novogratz expects institutional entrants and tokenized real-world assets, which carry different risk profiles, to reshape crypto rather than end it.
Summary
Galaxy CEO Mike Novogratz declared that crypto's "age of speculation" is coming to an end, arguing at the CNBC Digital Finance Forum that a severe market downturn combined with Wall Street's growing role in the sector will draw more risk-averse investors into digital assets. Speaking on Tuesday, February 10, he said speculation would be replaced by the use of crypto infrastructure to deliver banking and financial services globally, with a focus on "real world assets with much lower returns," as reported by CNBC.
His remarks come at a difficult moment for the industry. Bitcoin, which had been expected to benefit from a rally tied to pro-industry policies under US President Donald Trump, has slumped to its lowest level in 16 months. The source article notes it has dropped about 50% since its October all-time high, and the overall cryptocurrency market has lost roughly $2 trillion in value over the same period. Meanwhile, established financial players including Goldman Sachs, Société Générale, Robinhood and Stripe are expanding their blockchain-based offerings.
Galaxy has absorbed significant losses, with its fourth-quarter 2025 losses reaching $482 million. Novogratz argued that this downturn differs from past crashes, which included an approximately 80% Bitcoin decline during 2018 and a more than 70% fall in the year after FTX's collapse in November 2021. He pointed to the October 10 crash, which eliminated $19 billion in leveraged positions within 24 hours and damaged retail traders' confidence. "Crypto is all about narratives, it's about stories," he said, adding that rebuilding those stories after such losses takes time.
Novogratz framed the downturn as a metamorphosis rather than a terminal decline. He said financial institutions will bring in investors with risk tolerances different from traditional crypto participants, and that tokenized stocks and other real-world assets will carry a distinct risk profile.
His remarks come at a difficult moment for the industry. Bitcoin, which had been expected to benefit from a rally tied to pro-industry policies under US President Donald Trump, has slumped to its lowest level in 16 months. The source article notes it has dropped about 50% since its October all-time high, and the overall cryptocurrency market has lost roughly $2 trillion in value over the same period. Meanwhile, established financial players including Goldman Sachs, Société Générale, Robinhood and Stripe are expanding their blockchain-based offerings.
Galaxy has absorbed significant losses, with its fourth-quarter 2025 losses reaching $482 million. Novogratz argued that this downturn differs from past crashes, which included an approximately 80% Bitcoin decline during 2018 and a more than 70% fall in the year after FTX's collapse in November 2021. He pointed to the October 10 crash, which eliminated $19 billion in leveraged positions within 24 hours and damaged retail traders' confidence. "Crypto is all about narratives, it's about stories," he said, adding that rebuilding those stories after such losses takes time.
Novogratz framed the downturn as a metamorphosis rather than a terminal decline. He said financial institutions will bring in investors with risk tolerances different from traditional crypto participants, and that tokenized stocks and other real-world assets will carry a distinct risk profile.
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