Novogratz: the crypto speculation era is ending as institutions step in

Galaxy CEO Mike Novogratz said the “era of supercharged crypto speculation” is nearing its end as institutional investors take a larger role in the market. According to him, this shift is fundamentally reshaping the industry by reducing the influence of retail traders who once entered crypto seeking outsized, fast returns.

Retail, he said, “isn’t coming into crypto to make 11% a year,” while the new wave of institutional participants is focused precisely on more predictable, structured yields. Novogratz noted that the 2022 collapse of FTX shattered confidence and triggered a prolonged bear market, followed by the credit and liquidation shock of October 10 of the following year – an event that “wiped out a large portion of retail participants and market makers” despite the absence of a clear catalyst.

Novogratz argued that the industry is shifting toward practical, utility-driven solutions, with tokenized real-world assets playing a central role. He believes tokenization will drive the next cycle: returns will be lower but more stable, and the surrounding infrastructure will resemble traditional finance. The speculative corner of the market, he added, won’t disappear but will no longer define overall market behavior.

Chainlink co-founder Sergey Nazarov expressed a similar view, saying tokenized real assets could “outgrow the entire remaining crypto market,” reshaping the sector from the ground up. He also highlighted that rising demand for RWA tokens is already setting new standards for blockchain-based financial products.

Lightspark CEO David Marcus added that Bitcoin ownership is also evolving. Following October’s liquidation-driven plunge, BTC is increasingly shifting from long-term holders to institutional products and financial platforms. Still, he maintains that for those who see Bitcoin as a strategic hedge, the long-term outlook remains unchanged.

Analysts say the move toward tokenization, institutional risk management, and more conservative yield models signals the gradual normalization of the crypto market. Volatility cycles are becoming less extreme, and the industry is becoming more predictable – even if that means the end of the era of rapid “multipliers.”