According to Ripple CEO Brad Garlinghouse, the value of the crypto market will double this year, surpassing $5 trillion. The total market cap currently stands at $2.5T, data from Coin Market Cap suggests. Ripple’s Brad Garlinghouse expects that the value of the whole crypto market will double due to macro factors such as the first US spot bitcoin exchange-traded fund (ETF) and the upcoming bitcoin “halving.”
Garlinghouse’s reasons for the doubling
“I’ve been around this industry for a long time, and I’ve seen these trends come and go,” Garlinghouse said. “I’m very optimistic. I think the macro trends, the big picture things like the ETFs, they’re driving for the first time real institutional money.”
“You’re seeing that drives demand, and at the same time demand is increasing, supply is decreasing,” Garlinghouse added.
US Securities and Exchange Commission (SEC) approved the first US spot Bitcoin ETF on Jan 10. Trading on US stock exchanges allows institutions and retail investors to gain exposure to Bitcoin without directly holding the asset.
Every four years, bitcoin experiences a technical event known as halving. To verify transactions and mint new tokens, Bitcoin miners use high-power computers to verify transactions and halves the total mining reward they get. The last event of this kind was in 2020, and the next one is scheduled for later this month.
“The overall market cap of the crypto industry … is easily predicted to double by the end of this year … impacted by all of these macro factors,” Ripple CEO said.
In the past 12 months Bitcoin has risen over 140%. It hit a record high above $73,000 on March 13, according to CoinGecko data. Since then, however, it has fallen well below $70,000 and is currently changing hands at $69,736.
The world’s digital currency has been the main token driving gains for the broader market. Bitcoin accounts for about 52% of the entire crypto market, with a market capitalization of $1.3 trillion as of April 8.
Optimism surrounding US crypto regulations
Regulatory momentum in the US could also push the crypto market to new highs, Garlinghouse says. Crypto hopefuls believe the next administration will be more accommodating to the crypto industry this year since it is an election year.
A lot of crypto companies, including Ripple, have been targeted by the SEC under Gary Gensler. SEC sued Ripple for illegally selling XRP, a cryptocurrency Ripple is closely associated with, in unregistered securities deals. Ripple is fighting the suit and denies the claims.
“One of the things actually I’ll say on the macro tailwinds for the industry: I think we will get more clarity in the United States,” Garlinghouse said. Adding, “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.”
According to Ripple CEO Brad Garlinghouse, the value of the crypto market will double this year, surpassing $5 trillion. The total market cap currently stands at $2.5T, data from Coin Market Cap suggests. Ripple’s Brad Garlinghouse expects that the value of the whole crypto market will double due to macro factors such as the first […] Read MoreNews, Crypto, Regulation, Ripple, SEC
Todayq News
