Galaxy CEO: Crypto downturn reflects structural shift, not a single trigger

Speaking at the CNBC Digital Finance Forum in New York, Galaxy CEO Mike Novogratz stated that the recent cryptocurrency market correction reflects a structural shift across the industry rather than a collapse caused by a single negative event. He noted that while the 2022 FTX collapse had a clear cause—a loss of trust—the current downturn lacks a distinct trigger. Novogratz pointed to an event last October when more than 1.6 million traders had leveraged positions worth $19.37 billion liquidated in a single day, sending shockwaves through the market. In the aftermath, he explained, many retail investors and some liquidity providers exited, making it difficult for previous narratives to regain traction quickly. The "age of speculation" is gradually coming to an end, he added, highlighting a growing bipartisan consensus to pass the CLARITY Act. He described the crypto market structure bill as essential for restoring market trust and momentum.