Galaxy Digital CEO Mike Novogratz has declared that the speculative era in the crypto and cryptocurrency market is coming to an end. During a financial forum in New York, he emphasized that the era of quick profits with extreme returns no longer characterizes the industry. According to him, the market structure is now changing with the dominance of institutional investors who are more focused on stability. This shift marks a new, more mature phase in the digital asset ecosystem.
Speculation Replaced by Institutional Investors
Over the years, the crypto market has been driven by retail investors chasing huge profits in a short period of time. Assets like Bitcoin and Ethereum often experienced sharp price spikes that fueled market euphoria. However, Novogratz believes that interest in high-risk investments is starting to decline. Institutional investors are now looking for consistent returns rather than potential 100x returns.
The influx of institutions changed the market dynamics to be more structured and fundamentally based. The focus shifted from short-term speculation to the practical use of blockchain technology. Risk management standards have also become more stringent. This shows that the cryptocurrency industry is entering a more mature phase.
FTX Impact and Large Liquidations
The collapse of FTX in 2022 was an important turning point for the crypto market. Bitcoin price had fallen 78% to around $15,700 or IDR 263.85 million from its peak of $69,000 or IDR 1.15 billion. This event erased the confidence of retail investors and triggered a long bearish cycle. Many market participants exited due to heavy losses.
In addition, the October 2025 liquidation that wiped out more than $19 billion or around Rp319.31 trillion in 24 hours exposed the high leverage risk. The event depressed prices and accelerated market consolidation. Novogratz sees this phase as a reset towards a healthier market structure. Extreme speculation is slowly being replaced by a more rational approach.
Tokenization of Real Assets is the New Focus
Looking ahead, Novogratz sees the tokenization of real-world assets (RWAs) as a major direction of crypto growth. Assets such as bonds, property, and government bonds are now starting to be tokenized on the blockchain. This model offers stability because it is backed by a clear underlying asset. For institutions, this approach is considered safer than the highly volatile cryptocurrencies.
Tokenization also increases the efficiency and transparency of transactions. Institutions see blockchain as the financial infrastructure of the future, not just a speculation tool. This shift shows crypto evolving towards a more utility-based ecosystem. The transformation marks a major change in the structure of the global market.
Overall, Novogratz thinks the speculative era of crypto is winding down and being replaced by the dominance of institutional investors. The market focus is now on stability, utility, and real, tokenized assets. While volatility remains, the direction of the industry is increasingly integrated with the global financial system. Crypto is no longer just about instant gratification, but about long-term foundations.
Originally written by: Kezia Marcellova
Source: Pintu News
Published on: 12 February 2026
Link to original article: Galaxy CEO calls crypto entering a new, more ‘mature’ phase
