Brad Garlinghouse, CEO of Ripple, a cryptocurrency startup company, has projected a $5 trillion market capitalization for cryptocurrencies, which might happen this year. The positive projection is supported by a number of significant events in the crypto industry, including macroeconomic reasons and critical milestones such as the United States’ first bitcoin exchange-traded funds (ETFs) and the upcoming bitcoin mining event.
Having dealt with cryptocurrencies for a long time, Garlinghouse thinks that this up-and-down character is to be expected. He believes that the innovation of ETFs and the halving phenomenon will be the primary causes driving institutional investment into the business for the first time. The two ETFs accepted by the Securities and Exchange Commission on January 10 enable institutional and individual investors to have exposure to bitcoin in US stock markets without directly owning the cryptocurrency.
Furthermore, the next Bitcoin halving scheduled for this month is a significant event for the currency. A large amount of time goes between each of these events, and at the heart of it, all is the doubling of the incentive for mining each following bitcoin block, which ultimately reduces the rate at which new bitcoins are issued into the market and, as a result, supply.
Despite the appearance of a supply reduction, the combination of rising demand is predicted to reach the market by the end of the year, with its worth doubling the current total of $2.6 trillion. The above implies that the combined market capitalization of various cryptocurrencies is $5.2 trillion, a record high.
According to CoinGecko’s data, bitcoin has increased by 140% over the past 12 months, reaching about $73,000 at its peak in March. Despite a fresh price decline that brought the price below $70,000, bitcoin remains the dominant coin in the cryptocurrency market, accounting for about 49% of the total market cap.
Furthermore, Garlinghouse discussed the influence of looming regulatory changes in the US as another catalyst that might propel the crypto market to new record highs. Following the recent election season, the administration may be inclined to embrace a more positive approach to cryptocurrency, reflecting current optimism.
The SEC, under Gary Gensler, has taken a hard position against crypto businesses such as Ripple, which is embroiled in a legal dispute with the SEC over allegations that Ripple violated securities laws. Garlinghouse is confident in enacting complex legislation and establishing appropriate guidelines for cryptocurrency growth in the United States.
At a recent crypto event, Marshall Beard, COO of the US crypto exchange Gemini, predicted that the bitcoin price might reach $150,000 by the year’s end, keeping with Garlinghouse’s positive outlook. Beard’s observations are based on the sector’s rapid developments, legislative changes, the launch of the ETF, halving, and the ongoing shift in miner dynamics.
Many, including prominent figures in the crypto space like Garlinghouse and Beard, think that this could be the moment when the market experiences an unprecedented boom and investments in this space become commonplace. This is because the crypto industry is poised to witness potentially revolutionary innovations.
Source: https://www.cryptonewsz.com/ripples-ceo-foresees-crypto-boom-to-5t-usd-by-2024s-end/