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Mike Novogratz, founder and CEO of Galaxy, delivered a speech during an event held in New York City on Tuesday, February 10. In his speech, the industry executive noted that recent declines in the crypto industry reflect a broader structural shift within the sector.
Novogratz explained, “Crypto revolves around narratives; it’s all about the stories.” He added, “Building those stories takes time, and you’re bringing people in … so when a lot of them leave, it’s not easy to put things back together again.”
Nonetheless, he believed a more lasting outcome would emerge from this decline. Based on his belief, Novogratz highlighted that the current phase of crypto investment, which he referred to as “the age of speculation,” will gradually fade as institutional investors with diverse risk profiles show heightened interest in the crypto market and join the crypto community.
Recent downward trend in the crypto market sparks concerns among individuals
Over the years, Bitcoin and other cryptocurrencies have undergone substantial price fluctuations. Reports argued that these price changes may stem from systemic factors influencing the broader crypto market or from industry concerns during crypto winters.
Even so, individuals remained optimistic that crypto prices would recover, leading to another significant rise in digital assets beginning this year. To achieve this milestone, they relied on the Trump administration’s pro-crypto stance and hoped for clearer crypto market regulation.
However, contrary to their expectations, the opposite unfolded. Data from reliable sources show that Bitcoin’s price declined by more than 21% this year, hitting a 16-month low of $60,062.00 last week. This figure shows an almost 50% decrease from the October high recorded last year.
Following this finding, Novogratz noted a scenario in which BTC dropped by 22% in a single day in November 2022 amid the FTX collapse, leading to a breach of trust. Unlike this case, the industry executive argued that this time, “there’s no smoking gun,” leaving everyone baffled by the sudden, disastrous turn of events.
Novogratz also highlighted a substantial setback that occurred in October 2025, when $19.37 billion was wiped out from leveraged positions in just 24 hours, leaving 1.6 million traders severely shocked and marking the largest single-day loss in crypto history. According to him, this event significantly impacted retail investors and market makers, creating substantial downward pressure on prices.
Novogratz believes the crypto systems will either evolve or be replaced in the future
As discussions regarding recent price declines in the crypto market continued to heat up, Novogratz released a statement alleging that “Regular investors don’t enter crypto just to earn an 11% yearly return. They get involved because they want to achieve returns like 30 to one, eight to one, or ten to one.”
Although a segment of traders will always pursue speculative strategies, Novogratz argued that these same systems, the crypto systems, will either evolve or be replaced to offer worldwide financial services and banking solutions.
His argument suggests a trend toward diminished returns on real-world assets. Novogratz also highlighted tokenized stocks as assets with a distinct return profile
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