TL;DR
- Galaxy’s chief says the market is moving away from fast speculation toward practical blockchain use and tokenized assets.
- The firm prepares a $100 million hedge fund mixing crypto with financial stocks to navigate lower volatility.
- Recent price declines erased billions but encouraged regulation, institutional participation, and a more stable path for long-term growth.
The head of Galaxy Digital argues that the next phase for crypto will depend on integration with banking and capital markets rather than on quick trading profits. The change reflects broader adjustments in global finance after years of extreme swings.
The fall from the October record above $126,000 to around $66,551 reshaped expectations. Mike Novogratz said in an interview that blockchain networks will continue to expand even if returns resemble those of traditional investments. He noted that adoption by large institutions is advancing despite the correction.
Galaxy plans to respond with a new $100 million hedge fund that will hold up to 30% in tokens and the remainder in shares of companies linked to digital finance. The approach seeks balance between innovation and risk control. Several banks and payment firms increased their blockchain divisions during the last year, suggesting that demand for infrastructure remains solid.
Market figures show Bitcoin dropped more than 47% from its peak, while Ethereum lost close to 10% in the last week. Top altcoins recorded sharper falls, yet trading volumes on major platforms stayed active. Supporters of the sector argue that lower prices often attract developers and long-term investors who value technology over short-term excitement.
Bitcoin Dive Reinforces End Of Speculative Cycle And Market Reset
The October flash crash that erased $19 billion in derivatives became a turning point for sentiment. The event lacked a single trigger, but it reduced leverage and cooled excessive risk. Novogratz compared the episode with earlier downturns in 2018 and 2021, saying each correction helped the ecosystem mature and prepare for new users.
Tokenization Of Assets Opens Next Stage
Executives across Wall Street are testing methods to place bonds, funds, and private equity on blockchains. Tokenization can shorten settlement times and lower operational costs for issuers and investors. Novogratz believes these applications will shape the coming decade even if profits look steadier than the dramatic rallies traders once chased.
Developers continue to release scaling upgrades, custody services, and compliance tools. Exchanges report that institutional clients request staking and asset management products instead of aggressive leverage. The pro-crypto view inside the industry holds that innovation moved forward during the slump and that regulation will provide clearer rules for expansion.
