Will He Be Right? Ripple CEO Predicts Crypto Market to Hit $5 Trillion

The crypto market could be on the cusp of a major boom, according to Brad Garlinghouse, CEO of blockchain company Ripple.

In an interview with CNBC, Garlinghouse predicted that the total market capitalization of the crypto market could double by the end of 2024, reaching a staggering $5 trillion.

“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.”

This bullish outlook hinges on several key factors, including the recent arrival of the first US spot bitcoin exchange-traded funds (ETFs) and the upcoming bitcoin halving event.

The introduction of ETFs is seen as a game-changer for the crypto industry. These investment vehicles allow traditional institutions and retail investors to gain exposure to bitcoin without the complexities of directly owning and storing the digital currency. This influx of institutional money could provide much-needed stability and legitimacy to the often-volatile bitcoin market.

Bitcoin Halving: A Supply Squeeze?

The bitcoin halving, slated for later this month, is another factor fueling optimism. This event, which occurs roughly every four years, cuts the reward given to miners for verifying bitcoin transactions.

Bitcoin is now trading at $72.486. Chart: TradingView

This reduction in supply, coupled with potentially steady or even rising demand, could theoretically push the price of bitcoin upwards. Historically, bitcoin halvings have been followed by price surges, although past performance is not necessarily indicative of future results.

Regulatory Hurdles Remain

Despite Garlinghouse’s optimism about the regulatory landscape, challenges persist. The US Securities and Exchange Commission (SEC) has taken a cautious approach to regulation, with ongoing legal battles against several companies, including Ripple itself.

The SEC’s stance under its chairman, Gary Gensler, has focused on protecting investors, but it has also created uncertainty for the industry.

While Garlinghouse believes the US government could adopt a more accommodating stance towards crypto in light of the upcoming elections, the regulatory picture remains unclear.

Clear and consistent regulations would be a boon for the industry, fostering trust and encouraging further investment.

The Road Ahead For Crypto

Despite the inherent risks, the overall outlook for the crypto market appears cautiously optimistic. The influx of institutional money via ETFs, coupled with potential price increases due to the bitcoin halving, could propel the market to new heights.

Featured image from Pexels, chart from TradingView