The era of explosive crypto returns may be cooling as institutional investors increasingly replace retail traders who once fueled the market’s biggest rallies, according to Galaxy Digital CEO Mike Novogratz.
Crypto’s ‘age of speculation’ may be over, says Galaxy CEO Mike Novogratz https://t.co/P7Lxv8kAQm
— CNBC (@CNBC) February 10, 2026
Speaking at the CNBC Digital Finance Forum in New York on Tuesday, Novogratz said the shift signals a maturing industry, but one that may no longer deliver the outsized gains early adopters came to expect.
Institutional shift reshapes market dynamics
Novogratz pointed to the 2022 collapse of FTX as a defining moment that fractured trust across the industry. In the aftermath, Bitcoin plunged roughly 78%, falling from its then-all-time high near $69,000 to about $15,700 in November 2022.
More recently, Novogratz referenced the October 10 leverage flush, describing it as a major event that wiped out significant retail participation and several market makers, intensifying selling pressure despite the absence of a clear catalyst.
According to Novogratz, crypto markets are deeply driven by narratives. When leverage is cleared out and speculative players are forced to exit, rebuilding momentum takes time. “Humpty Dumpty doesn’t get put back together right away,” he remarked, underscoring the fragility of sentiment-driven rallies.
Tokenized real-world assets seen as next growth driver
Looking ahead, Novogratz expects the industry’s focus to gradually shift from high-risk speculation toward practical use cases, particularly tokenized real-world assets (RWAs). These blockchain-based representations of traditional assets, such as bonds or real estate, could offer steadier, though lower, returns than volatile tokens.
While speculative trading will not disappear entirely, he believes it will increasingly be complemented, or even replaced, by blockchain infrastructure supporting global banking and financial services.
Chainlink co-founder Sergey Nazarov echoed a similar view, suggesting that tokenized RWAs could eventually surpass cryptocurrencies in total value and fundamentally reshape what the digital asset industry represents.
Meanwhile, Lightspark CEO and former PayPal executive David Marcus told Bloomberg that the profile of Bitcoin holders is also evolving. He said ownership is shifting from early believers holding coins directly to broader exposure through traditional financial systems.
Despite the market’s changing structure and recent volatility, Marcus maintained that long-term Bitcoin advocates, particularly those who view it as a hedge against macroeconomic uncertainty, are likely to remain confident in their positions.
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