Crypto's Era of Outsized Gains Coming to an End

Mike Novogratz, CEO of Galaxy, said at the CNBC Digital Finance Forum in New York that crypto's era of outsized gains may be coming to an end. He noted that institutional players are replacing retail investors seeking rapid returns.

The 2022 FTX collapse triggered a breakdown in trust and sent Bitcoin prices down 78% from $69,000 to $15,700 by November that year.

Novogratz emphasized that crypto markets operate on narratives and stories that take time to build and attract participants. When those participants get wiped out, recovery does not happen immediately.

The Galaxy CEO expects the industry to transition from high-return speculation toward practical applications like tokenized real-world assets offering steadier returns.