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.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Dogecoin Price Jumps as Derivatives Demand Signals Breakout
Key Insights
Dogecoin surged to a weekly high of $0.103 as improving market sentiment and strong derivatives demand encouraged traders to position for further gains.
Futures data from CoinGlass showed a positive funding rate, indicating long traders are paying premiums while positioning for
CryptoFrontNews15m ago
Hidden "Death Spiral" Risk! Ethereum and Bitmine targeted by short-selling institutions
Ethereum is about to undergo a major upgrade, and the market is highly focused on it. However, short-selling firm Culper Research believes that the Ethereum economic model is failing and warns of a potential "death spiral." They point out that a significant drop in transaction fees and shrinking staking rewards will impact network security. The report also mentions Vitalik Buterin selling Ethereum and questions the market fundamentals, suggesting that Ethereum is facing a new reality.
区块客1h ago
Retail investors are not trading cryptocurrencies but stocks? Cryptocurrency market liquidity is moving to the US stock market, AI helps interpret financial reports and boosts confidence
Wintermute's research indicates that retail cryptocurrency funds are flowing heavily into the US stock market, reversing the correlation to become negatively correlated. As liquidity in the crypto market declines, retail investors prefer mature stock markets, aided by generative AI enhancing their investment capabilities. Cryptocurrencies are gradually becoming part of asset allocation.
CryptoCity3h ago
ETH drops 1.36% in 15 minutes: Deteriorating macro sentiment and liquidity crunch trigger spot selling pressure
From 02:45 to 03:00 on March 8, 2026 (UTC), ETH prices fluctuated sharply within the range of 1,936.0 to 1,969.18 USDT. The 15-minute candlestick yield was -1.36%, with an amplitude of 1.68%. The short-term downtrend intensified, market attention significantly increased, trading activity was high, and panic sentiment dominated.
The main driver of this anomaly was the widespread decline in global risk assets and escalating extreme panic sentiment. Major US stock indices experienced a sharp pullback, and the VIX fear index soared to 29.49 (+24.17%), leading to
GateNews4h ago
