Galaxy CEO: Is the Crypto "Speculation Era" Coming to an End? Institutional Entry and the Rise of RWA Reshaping Market Logic
February 11 News, Galaxy CEO Mike Novogratz stated at the CNBC Digital Finance Forum in New York that as more low-risk institutional funds enter the market, the era of cryptocurrency relying on high-multiplier speculative gains may be coming to an end, and the industry is evolving toward a more mature financial form.
Mike Novogratz pointed out that retail investors entering the crypto market often seek returns of several times or even dozens of times, while institutional investors prioritize stability and risk control. This shift in participant structure means that the potential for excess returns is being compressed. He reviewed the impact of the FTX collapse in 2022, when Bitcoin dropped about 78% from its high of $69,000, touching a low of $15,700, causing a crisis of confidence in the market.
He also mentioned the leveraged concentration event on October 10, which, in the absence of clear catalysts, intensified capital outflows and selling pressure. “You look around but find it hard to identify the real reason,” he said. For him, the crypto market is essentially a “narrative-driven asset,” and when large amounts of capital exit, confidence and stories both need time to rebuild.
Regarding future directions, Mike Novogratz believes that tokenized real-world assets will become a new growth engine. Compared to high-risk speculation, these assets are closer to traditional financial return models but can leverage blockchain technology to improve efficiency and transparency. He emphasized that ultimately, the market will be dominated by assets closely connected to the real economy.
Chainlink co-founder Sergey Nazarov also expressed a similar view, stating that the overall value of RWA (Real-World Assets) is expected to surpass that of traditional crypto assets and drive a structural transformation in the industry.
Meanwhile, Lightspark co-founder and CEO David Marcus said that the structure of Bitcoin holders is changing, with more new users accessing the financial system through the network. However, he believes that those who have long viewed Bitcoin as a hedge still possess strong risk resistance.
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