The crypto market is bracing for a potential boom, with Ripple CEO Brad Garlinghouse predicting a staggering doubling of its total market value to surpass $5 trillion by the end of 2024. This bullish forecast hinges on a confluence of factors, including the recent arrival of US spot Bitcoin exchange-traded funds (ETFs), the upcoming Bitcoin halving, and the anticipation of a more crypto-friendly regulatory landscape in the United States.
In a recent interview with CNBC, Garlinghouse pointed to the influx of institutional capital via the newly launched Bitcoin ETFs as a key driver of growth. Approved by the SEC in January 2024, these ETFs offer investors a convenient way to gain exposure to Bitcoin without directly owning the underlying asset. This increased accessibility is expected to significantly bolster demand for the leading cryptocurrency.
Bitcoin Halving A Supply Squeeze on the Horizon
Adding fuel to the fire is the much-anticipated Bitcoin halving event scheduled for later this month. This pre-programmed code reduces the block reward for Bitcoin miners by half, effectively slowing down the creation of new Bitcoins. As a result, the supply of Bitcoin becomes more constrained, potentially pushing its price upwards due to basic principles of scarcity. Garlinghouse emphasized this dynamic, stating, “You’re seeing that drives demand, and at the same time demand is increasing, supply is decreasing.“
Beyond these market-specific factors, Garlinghouse identified a potentially transformative shift in the regulatory environment as a major tailwind for the industry. With a change in presidential administration, there’s optimism that the US will adopt a more accommodating stance towards cryptocurrencies. Regulatory clarity is seen as a critical piece of the puzzle for mainstream adoption, as Garlinghouse highlights:
“The U.S. is still the largest economy in the world, and it’s unfortunately been one of the more hostile crypto markets. And I think that’s going to start to change, also.“
Ripple’s Bullish Outlook Amidst Legal Battle
It’s important to note that Garlinghouse’s bullish predictions come amidst Ripple’s ongoing legal battle with the SEC. The SEC alleges that Ripple’s XRP token constitutes an unregistered security. However, a recent court ruling offered Ripple a partial victory, casting doubt on the SEC’s claims.
Also Read: Grayscale Shakes Up Its Crypto Basket: In with XRP, Out with Cardano
As the cryptocurrency market continues to evolve, a potent mix of institutional investment, technical advancements like the Bitcoin halving, and the prospect of a friendlier regulatory environment is fueling optimism among industry leaders. If Garlinghouse’s prediction materializes, a market capitalization of $5 trillion by year’s end would represent a significant milestone for the crypto industry, solidifying its place in the global financial landscape.
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