Galaxy Digital CEO Mike Novogratz says the October 10th crash in crypto was 
far more than a routine shakeout, claiming that roughly a third of market 
makers in parts of the ecosystem were effectively wiped out. &#8220;We had a flash 
crash and it did a lot of damage to the fabric of the market,” Novogratz told 
Anthony Scaramucci on the first-ever episode of “All Things Markets,” recorded 
November 26. “Even on Hyperliquid, the market makers, you know, 30 percent of 
them went out of business. Got zeroed.” Scaramucci framed the last 20 trading 
days as another brutal reminder of crypto’s structural volatility. “I know I 
have a trap door on my portfolio,” he said. “Once in a while I’ll be walking 
across the living room feeling beautiful about myself. And then, boom, a trap 
door opens and I have fallen into the basement of the house.” Related Reading: 
Will Crypto Explode If Kevin Hassett Takes Over The Fed In 2026? According to 
Novogratz, this particular trap door opened at Binance. “It started really by, 
you know, at Binance, they had an oracle which set price misfunction,” he 
said. That error hit a synthetic stablecoin and “created a cascade where 
people were getting stopped out because there was the wrong price.” The 
dislocation then bled into levered perpetual markets “like Hyperliquid, like 
Uniswap,” where “as prices went down, people started getting liquidated.” He 
argued that the way crypto participants use leverage turned a technical glitch 
into a systemic event. “What people don’t understand about crypto is that the 
crypto investor doesn’t play for 10, 11, 12 percent returns,” he said. “Crypto 
investor call themselves degens with pride. They want to turn one into 15. And 
so they trade a very volatile asset with a lot of leverage.” Perpetual futures 
make that leverage particularly dangerous for liquidity providers. “Perpetual 
futures are not normal futures,” Novogratz said, crediting “the genius that 
Arthur Hayes and his group of people” for a design where “as longs get 
liquidated, they’re paired off against shorts.” In a fast collapse, “you could 
be short and you lose your short position. Well, if you’re long on another 
exchange against that short position, you’re shit out of luck. And that 
happened to a lot of market makers.” Will The Crypto Market Recover? The 
result, he said, was a sharp loss of liquidity and retail capital. “We lost a 
lot of liquidity in the market. We lost a lot of retail punters who lost their 
stack,” he noted, adding that after such a wipeout “it takes a while for 
Humpty Dumpty to get put back together again.” Novogratz said he initially 
expected higher levels to hold. “I actually, to be fair, thought we were going 
to hold at higher levels at $90,000,” he admitted. “And we went all the way to 
$80,000. $80,000 was a maximum pain point… Got to $1.80 on XRP. We got to $125 
on Solana. Real pain points.” He links the subsequent rebound to macro 
tailwinds, not healed sentiment. “Now we bounce up. We bounce because of the 
Fed. But we’re not out of the woods,” he said. “I do think Bitcoin will climb 
back towards $100,000 by the end of the year, but there’ll be sellers waiting 
there. We’ve done some medium-term damage to the psychology of the market.” 
Related Reading: Crypto Has Entered Late-Cycle Territory, Says Global 
Liquidity Veteran On the spot side, he highlighted massive profit-taking by 
early holders against ETF-driven inflows. “We had one $9 billion seller,” he 
said. “That’s one-third of all of IBIT’s flows of the year.” As US wealth 
channels move “from a zero weighting to a 3 to 4 percent weighting” in 
Bitcoin, that “was met with OG sellers.” “In the long run, that’s healthy,” he 
said. “In the short run, that’s painful.” Novogratz also argued that crypto is 
being repriced as a real business ecosystem rather than a pure story. “It’s a 
transition from just being a story — ‘we’re the most important industry… we’re 
going to decentralize the world’ — to ‘show me what crypto actually does,’” he 
said. “Some businesses are making money. Some businesses aren’t. There are 
some token ecosystems that make common sense to an investor and there’s some 
that all feel like they’re just an association.” Overlaying it all is a macro 
backdrop he views as increasingly supportive. He called the Fed’s recent 
signals and plans to ease bank cash requirements in repo “a monstrous 
liquidity boom that’s coming,” adding that “they’re going to bring rates down 
to 2 percent in the next 16 months” and that inflation will “creep higher,” 
implying negative real rates. For crypto, the message is double-edged: 
structurally de-levered, with fewer market makers and wounded sentiment, but 
still tied to a global liquidity cycle that Novogratz believes is turning in 
its favor — once Humpty Dumpty gets put back together again. At press time, 
Bitcoin traded at $91,115. Featured image from YouTube, chart from 
TradingView.com

30% Of Crypto Market Makers Got Wiped, Mike Novogratz Says

Blackrock’s bitcoin ETF enters a pivotal moment as Nasdaq seeks SEC approval 
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institutional activity, and enhanced transparency across the regulated crypto- 
linked derivatives market. Wall Street Braces as SEC Weighs IBIT’s 1M Options 
Limit The U.S. Securities and Exchange Commission (SEC) issued a notice on 
Nov. […]

Blackrock’s Bitcoin ETF Nears Breakthrough as SEC Weighs Expansive 1M Options Limit

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Bolivia has moved to bring stablecoins into its formal banking system, a shift 
that could change how people save and pay for things in the country. Banks 
will be allowed to offer accounts, custody and payment services tied to 
stablecoins such as USDT, government statements and local reports disclosed. 
The move follows a sharp rise in crypto use as people seek ways to hold 
dollar-pegged value amid currency pressure. Related Reading: Bitcoin Faces 
More Downside After Recent Crash, Data Shows Banks To Offer USDT Accounts 
Reports have disclosed that Economy Minister Jose Gabriel Espinoza announced 
the change, and at least one lender, Banco Bisa, has already begun offering 
custody and transfer services for USDT. Based on reports, crypto transactions 
in Bolivia jumped dramatically last year, with some counts showing growth of 
more than 500% and figures putting crypto activity at $294 million in the 
first half of 2025. Those numbers have pushed regulators and banks to respond 
more directly. 💥 BREAKING: 🇧🇴 Bolivia to integrate Bitcoin and crypto into its 
financial system, starting with stablecoins pic.twitter.com/Qb0Tj7pern — 
Bitcoin Archive (@BitcoinArchive) November 26, 2025 Everyday Payments And 
Savings People and businesses are reportedly testing USDT for real payments. 
Some shops and service providers have shown prices in USDT, and certain 
sectors — such as car dealers and firms handling imports — are said to be 
accepting stablecoin payments for some transactions. According to market 
observers, the change is partly a response to shortages of physical US dollars 
and to rising costs that make the local currency less stable for saving. Banks 
will be able to create savings products denominated in stablecoins, and may 
offer loans or payment options tied to them. Cross-Border Transfers And 
Remittances Based on reports, one obvious use will be cross-border transfers. 
Stablecoins can offer a dollar-pegged option when access to actual US dollars 
is limited. That could help businesses that buy fuel or other imports and 
families that receive money from abroad. Still, practical hurdles remain: many 
people are unbanked or lack easy internet access, and broad adoption will take 
infrastructure, training and clear consumer protections. Regulatory Limits And 
Risks According to analysts, the government’s plan does not make stablecoins 
legal tender in place of the boliviano. Rather, it lets regulated banks 
provide crypto-linked services under the financial system. That means 
accepting USDT will likely stay voluntary for merchants. There are also risks 
to watch: stablecoin liquidity, custody safety, and how well banks manage 
anti-money-laundering rules. Consumer education and stronger oversight will be 
needed to protect ordinary users. What Comes Next Several months of rollout 
and pilot programs are expected, and observers will be watching transaction 
volumes and how many banks and businesses sign on. If the system grows, 
Bolivia could become an example for neighboring countries facing similar 
currency stress. But the deeper economic problems that pushed people to crypto 
— inflation and limited dollar access — will still need government solutions 
beyond new payment rails. Related Reading: Bitcoin Whale Reenters ETH Market, 
Fires Off A $44-M Long Based on current reports, the change is a clear policy 
shift toward regulated crypto use in everyday finance. It is small steps now, 
but they may matter a lot to people trying to keep their savings stable and 
move money across borders. Featured image from Pexels, chart from TradingView

USDT Goes Mainstream In Bolivia As Gov’t Approves Crypto Banking

The SEC’s Dec. 4 meeting channels accelerating crypto-industry energy as 
Coinbase, Blackrock, Galaxy, and Robinhood join regulators to advance 
tokenized-equity frameworks, fresh governance updates and clearer AI 
disclosures, setting up a more efficient, technology-ready market structure. 
SEC Sets Stage for Governance, Tokenization, AI Review The U.S. Securities and 
Exchange Commission (SEC) announced on Nov. 25 […]

Cryptocurrency price in BTC