Crypto’s ‘age of speculation’ is over, says Galaxy CEO Mike Novogratz
Bitcoin and other cryptocurrencies have always been known for their volatility, with prices fluctuating due to various factors such as macroeconomic trends or industry concerns. Many were optimistic about a potential bull run in digital assets at the beginning of 2026, especially with a crypto-friendly Trump administration and expectations for the passage of a cryptocurrency market structure bill. However, the reality has been quite different, with Bitcoin experiencing a significant decline of more than 21% so far this year.
The price of Bitcoin dropped to $60,062.00 last week, its lowest level in approximately 16 months, marking a nearly 50% decrease from its record high in October 2025. So, what is driving this latest decline? According to Galaxy founder and CEO Mike Novogratz, it reflects a broader shift in the industry rather than a single event. He highlighted the 22% drop in Bitcoin back in November 2022 following the collapse of FTX, which led to a “breakdown in trust.” However, this time around, there is no clear cause for the decline.
Novogratz pointed to the wipeout that occurred in October 2025 as a significant event, where over 1.6 million traders saw a combined $19.37 billion in leveraged positions erased within 24 hours. This situation, according to Novogratz, put immense pressure on prices and affected both retail investors and market makers.
The Galaxy founder also mentioned a shift in the crypto industry, moving away from the “age of speculation” towards a more institutionalized approach with different risk tolerances. He believes that the recent downturn will phase out speculative investing in crypto, transitioning towards a focus on using crypto infrastructure for banking and financial services globally.
Novogratz emphasized the importance of the CLARITY Act for the crypto industry, stating that it is needed to bring back confidence and spirit to the market. Despite the current stall in momentum for the crypto market structure bill on Capitol Hill, he remains optimistic about its eventual passage, citing conversations with Senate Minority Leader Chuck Schumer who expressed determination to pass the act.
In conclusion, while the crypto market is currently experiencing a downturn, Novogratz sees a shift towards more sustainable and institutionalized investing in the future. The passage of regulatory measures like the CLARITY Act could serve as a catalyst for the industry’s growth and stability, paving the way for a new era of crypto adoption and utilization beyond speculative trading.
