The passage of two key crypto invoices in the US brings a new wave of crypto participation that could overturn the traditional four-year market cycle, according to Galaxy Digital CEO Mike Novogratz.
Novograts told Bloomberg Tuesday that the stable regulatory genius law that it signed into law in July and a clear law outlining regulatory jurisdiction over crypto would lead to a surge in new investors that disrupt the four-year cycle pattern.
“That’s a big deal. These two bookends of the law will unleash an incredible amount of new participation in cryptography.”
Many crypto investors believe that the market follows a pattern of price transfers that coincides with Bitcoin (BTC). The last half occurred in April 2024, which some believe the current bull market could soon end.
However, Novograts said this crypto market cycle could be different as investors are unlikely to sell at peak levels at the end of the year, like in 2017 and 2021.
He added that people have not been able to use Stablecoins on their iPhones or social media apps before.
“You have this new wave of participation, so we may not be in the traditional cycle.”
Clarity is to make “freight trains”
Coinbase CEO Brian Armstrong said on September 17th that he will pass a clear act by certain legislatures, reflecting Novogratz’s sentiment.
“I have never been more bullish in the market structure. [bill] As you pass, it’s a freight train leaving the station,” he said at the time.
Last week, France’s representative Hill said the House Financial Services Committee hopes that measures against either October or November law will be taken.
Democrats were able to push back the law
Novograts also lost concern about the Trump family’s involvement in the crypto, convinced that the Securities and Exchange Commission would follow up with conflicts of interest.
“I don’t think we can prevent children from joining the business of people,” he said.
He said Democrats could do a big deal about what they perceived as “glyft” from Trump, potentially pushing back the Cryptomarket Structure Bill.
Related: The top democratic signal in the US is the battle for crypto market structure
Novograts said there are enough Democrats to see the value of code to pass the bill, but in last year’s presidential election, it was “silly for Democrats to become anti-cryptic.”
Chinese miners and hazes added to the market slump
Speaking about this week’s leverage flashout, nearly $200 billion has been wiped out from Spot Crypto Market, with Novograts falling to “Big Chinese Mining Sale” and Arthur Hayes’ “Bearish Commentary on Hyper Liquid.”
“Hyperliquid hit the hardest, and it was part of the overall sentiment in the market, but I think this is just a pullback.”
Hayes sold hype and placed sediment in Ferrari, but tokens have fallen by more than 23% since last week’s all-time high as whales continue to offload.
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