What's Happening?
Mike Novogratz, CEO of Galaxy, has suggested that the 'age of speculation' in cryptocurrency may be coming to an end. Speaking at the CNBC Digital Finance Forum, Novogratz highlighted a shift in the industry
following significant price fluctuations and a breakdown in trust after the collapse of FTX. Despite expectations for a bull run in digital assets, Bitcoin has seen a substantial decline, marking a drop of nearly 50% from its record high in October 2025. Novogratz noted that the recent downturn is not driven by a single event but reflects a broader industry shift. He anticipates that the speculative nature of crypto investing will be replaced by more stable, real-world asset investments, driven by institutional involvement and lower returns.
Why It's Important?
The potential end of the speculative era in cryptocurrency signifies a major shift in the industry, impacting investors and market dynamics. As institutions become more involved, the focus may shift from high-risk, high-reward investments to more stable financial services using crypto technology. This transition could lead to increased regulatory scrutiny and the development of new market structures, influencing the future of digital asset trading. The passage of the CLARITY Act, as mentioned by Novogratz, could further catalyze this shift by providing a clearer regulatory framework, potentially restoring confidence and spirit in the crypto market.
What's Next?
The crypto industry is likely to see continued efforts to pass regulatory measures like the CLARITY Act, which could provide a more structured environment for digital asset trading. As institutions play a larger role, the market may evolve towards offering financial services globally, using crypto rails for banking and asset management. This shift could lead to the development of tokenized stocks and other real-world assets with different return profiles, potentially stabilizing the market and attracting a broader range of investors.
