In an interview with CNBC recently, Ripple CEO Brad Garlinghouse predicted that the market capitalization of the cryptocurrency market would exceed $5 trillion this year. Factors driving this spike included, among others, ETFs advent, coming Bitcoin halving and hope for more US friendly policies, according to Mr. Garlinghouse.
This optimism comes from his extensive experience in the world of digital currencies and how various trends come and go amid uncertainty regarding their future. He said ETFs at the macro-level may attract real institutional money into the market for the first time ever. This means that with increasing demand and decreasing supply, what outcome awaits becomes clear.
The approval of the first Bitcoin ETFs in January by the Securities and Exchange Commission (SEC) is a tremendous achievement. This made it possible for institutions as well as retail investors to invest without actually owning Bitcoin. Moreover, this year’s halving event, which usually takes place after every four years, will see Bitcoin miners rewarded with fewer Bitcoins as compared to the previous events. The expected outcome is that this should further reduce the supply of Bitcoin.
By April 4th, market value of all cryptos combined was roughly $2.6 trillion. Assuming that Garlinghouse is right about a $5.2 trillion new market cap, then he is predicting an extraordinary development. In March alone, Bitcoin, the leading digital currency, rose by over 140% and hit a new high above $73k. There have been some corrections since then, but it remains the catalyst of most gains in the market.
Ripple CEO Highlights Crypto Regulatory Considerations
While the market has historically been seen as being unfriendly to cryptocurrencies, Garlinghouse said that this might not be the case any longer due to regulatory developments that are happening in the country. It is evident that a lot of optimism is surrounding potential improved regulations and the ensuing benefits for crypto enthusiasts regarding Ripple’s own legal issues since it is involved with the SEC in a security suit.
However, Garlinghouse isn’t alone in his bullish predictions for crypto. Gemini COO Marshal Beard projects Bitcoin at $150,000 before year-end due to several factors such as acceptance, legislation and supply-side drivers. Nevertheless, as the cryptocurrency market continues to evolve and mature investors are bracing for what could be a momentous year characterized by volatility, regulatory shifts and the unrelenting pursuit of new all-time highs.
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