Bitcoin has fallen more than 21% this year, and it dipped to $60,062 last week, its lowest level in roughly 16 months. The decline marks a drop of nearly 50% from its record peak in October 2025. Galaxy founder and CEO Mike Novogratz framed the downturn as part of a broader industry shift, saying there is no single smoking gun this time. He noted the October 2025 wipeout when more than 1.6 million traders suffered a combined $19.37 billion erasure of leveraged positions over a 24-hour period, a move that he said wiped out a lot of retail and market makers and put plenty of pressure on prices.
Novogratz argued that crypto is moving away from the “age of speculation” toward participation by institutions with higher risk tolerance, and that the next phase will feature real-world assets with lower returns, including tokenized stocks. Sigalos asked Novogratz if the eventual passage of the CLARITY Act could be a catalyst for the industry, with the stall in the crypto market structure bill’s momentum on Capitol Hill at least a short-term headwind. He is confident a crypto market structure bill will eventually become law.
“I talked to Senate Minority Leader Chuck Schumer two nights ago and he said ‘We’re going to pass the goddamn CLARITY Act,’” Novogratz said. “The Democrats want to pass the act, and the Republicans want to.” Novogratz said the crypto industry needs the bill for “a lot of reasons,” but notably, “We need it for spirit back in the crypto market.” “People are looking for one thing to blame for the current retracement in bitcoin. But there is not any one thing to blame,” says Bitwise CIO Matt Hougan.
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