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$BTC Bitcoin is facing serious pressure in 2026.
So far this year, Bitcoin has dropped over 21%, and compared to its October 2025 all-time high, it has fallen nearly 50%. Just last week, the price touched around $60,000 — the lowest level in about 16 months.
For many investors, this was unexpected.
With a crypto-supportive U.S. administration and hopes for new cryptocurrency regulations to bring clarity to the market, a lot of people predicted a major bull run at the start of 2026. Instead, the market moved in the opposite direction.
Galaxy Digital CEO Mike Novogratz believes the industry may be entering a new phase. According to him, the “speculation era” of crypto — where investors expected massive, fast profits — could be slowing down.
As larger and more cautious institutions enter the space, the focus may shift away from hype-driven gains and toward real-world assets and more stable, lower returns.
In simple terms:
Crypto might be maturing.
Historically, Bitcoin has always been volatile — sometimes reacting to global economic pressure, and other times going through its own “crypto winters.” This drop could be another reset phase before the next major move.
The big question now is:
Is this just another cycle… or the beginning of a more stable, regulated crypto market?
One thing is certain — the market is changing.

Published: February 10, 2026

$BTC The cryptocurrency market’s latest downturn may signal more than just another cyclical pullback. According to Galaxy founder and CEO Mike Novogratz, the industry could be transitioning away from what he calls its long-standing “speculation phase” and toward a more mature, institutional-driven era.

Bitcoin’s Rough Start to 2026

Bitcoin has struggled in early 2026, falling more than 21% year-to-date and dropping nearly 50% from its October 2025 record high above $126,000. Last week, the cryptocurrency slid to around $60,000 — its lowest level in roughly 16 months.

The decline has surprised many investors who expected a strong rally this year. A crypto-friendly Trump administration and optimism surrounding pending U.S. crypto legislation had fueled hopes for renewed bullish momentum. Instead, the market has faced sustained selling pressure.

No Single Trigger This Time

Speaking at the CNBC Digital Finance Forum in New York, Novogratz noted that this downturn differs from past crashes. When bitcoin plunged in November 2022 following the collapse of FTX, the catalyst was clear: a major breakdown in trust across the industry.

“This time, there’s no obvious event you can point to,” he explained. Rather than a dramatic collapse, the current weakness appears to reflect broader structural changes within the crypto ecosystem.

However, he did highlight the massive liquidation event in October 2025 as a pivotal moment. During a 24-hour period, more than 1.6 million traders saw approximately $19 billion in leveraged positions wiped out. That wave of forced selling, Novogratz said, severely impacted retail traders and market makers alike, leaving lasting damage to market sentiment.

Crypto markets, he emphasized, are heavily driven by narratives and momentum. Once confidence is shaken and speculative capital exits, rebuilding enthusiasm takes time.

The End of “30-to-1” Expectations?

Novogratz believes the bigger shift underway is cultural. Retail traders historically entered crypto markets chasing exponential returns — 5x, 10x, or even 30x gains. That appetite for outsized risk helped fuel dramatic bull runs.

But as institutional players continue entering the space, risk tolerance is changing. Pension funds, asset managers, and corporate investors operate under stricter mandates and are generally satisfied with steadier, lower-risk returns.

As a result, Novogratz expects crypto’s infrastructure — often described as “crypto rails” — to be increasingly used for practical financial applications rather than pure speculation. Tokenized real-world assets, digital securities, and blockchain-based financial services could gradually replace the high-volatility trading culture that once defined the industry.

In this emerging model, returns are likely to resemble those of traditional finance, not the explosive gains that characterized earlier crypto cycles.

Tokenization and Market Structure Reform

One area Novogratz sees as particularly important is tokenized equities and other real-world assets. These instruments, he suggested, will carry different risk-return dynamics compared to cryptocurrencies like bitcoin.

He also expressed strong confidence that U.S. lawmakers will eventually pass comprehensive crypto market structure legislation, including the proposed CLARITY Act. Regulatory clarity, he argued, is essential not only for operational certainty but also for restoring confidence and momentum within the market.

Bipartisan support for crypto regulation appears to be building in Washington, according to Novogratz, and he remains optimistic that legislation will move forward.

A Maturing Industry

While speculative trading will never fully disappear, Novogratz believes its dominance may be waning. The industry is evolving from a retail-driven, hype-fueled marketplace into a more institutional, infrastructure-focused financial system.

If that transition continues, crypto’s future may revolve less around rapid wealth creation and more around efficiency, global access to financial services, and the tokenization of traditional assets.

For investors accustomed to dramatic bull runs, the shift could mark the end of an era — and the beginning of a more measured chapter in digital asset markets.

Published: February 11, 2026

Franklin Templeton and Binance have introduced a new institutional-grade off-exchange collateral program, marking another step forward in the integration of traditional finance and digital asset markets. The initiative enables eligible institutional clients to use tokenized money market fund (MMF) shares as trading collateral on Binance—without moving assets onto the exchange itself.

A New Model for Institutional Collateral

Through Franklin Templeton’s Benji Technology Platform, tokenized shares of money market funds can now be pledged as collateral while remaining in third-party custody. Binance’s institutional custody partner, Ceffu, provides the infrastructure that mirrors the collateral value within Binance’s trading ecosystem.

This structure allows institutions to maintain custody of their assets off-exchange while still deploying them efficiently in digital asset markets. The result is improved capital utilization combined with enhanced risk management.

Addressing Institutional Pain Points

Institutional traders have long faced a trade-off between capital efficiency and counterparty risk when posting collateral on exchanges. Traditionally, assets needed to be transferred directly onto a trading platform, increasing exposure risk and limiting flexibility.

With this new framework:

Assets remain securely held in independent custody.

Collateral value is reflected within Binance’s trading environment.

Institutions can continue earning yield on regulated money market fund holdings.

Counterparty and custody risks are significantly reduced.

By allowing tokenized MMF shares to function as off-exchange collateral, the program offers a regulated, yield-generating solution aligned with institutional governance and compliance standards.

Strengthening the Bridge Between TradFi and Crypto

This launch builds upon the strategic partnership announced between Franklin Templeton and Binance in 2025. The collaboration reflects a broader industry movement toward blending established financial products with blockchain-based infrastructure.

Roger Bayston, Head of Digital Assets at Franklin Templeton, emphasized that the initiative is designed to help institutions deploy capital more efficiently while maintaining strong risk controls. Meanwhile, Binance’s Head of VIP & Institutional, Catherine Chen, highlighted the growing importance of tokenized real-world assets in making markets more efficient and accessible.

Ceffu CEO Ian Loh added that institutional participants increasingly demand solutions that balance robust risk management with optimized capital use—especially in markets that operate around the clock.

Why Tokenized Money Market Funds Matter

Tokenized money market funds represent a practical example of how traditional financial instruments can be adapted for blockchain environments. They provide:

Stable, yield-bearing collateral

Compatibility with 24/7 trading and settlement cycles

Integration into institutional risk and governance frameworks

Reduced operational friction

As digital assets become more embedded within mainstream finance, infrastructure that supports institutional requirements—such as custody, liquidity management, and regulatory alignment—will be critical.

The Bigger Picture

Institutional adoption of digital assets depends on reliable, compliant, and efficient infrastructure. By enabling tokenized real-world assets to serve as off-exchange collateral, Franklin Templeton and Binance are responding to growing demand for secure, yield-generating trading solutions.

This development not only enhances the institutional trading experience but also signals continued convergence between traditional capital markets and blockchain-based financial systems.