Benzinga - Brad Garlinghouse, the CEO of blockchain startup Ripple, projected that the cryptocurrency market’s total capitalization could hit $5 trillion this year.
What Happened: Garlinghouse’s bullish forecast for the crypto market is driven by several macro factors, including the launch of the first U.S. spot Bitcoin (CRYPTO: BTC) exchange-traded funds (ETFs) and the upcoming bitcoin “halving,” reported CNBC.
The Ripple CEO pointed to the influx of institutional money into the market, facilitated by the ETFs, as a significant factor. He also noted that prices are likely to rise as demand increases and supply decreases.
"The overall market cap of the crypto industry … is easily predicted to to double by the end of this year … [as it's] impacted by all of these macro factors," Garlinghouse said.
The U.S. Securities and Exchange Commission approved the first U.S. spot bitcoin ETFs on Jan. 10. The bitcoin halving, a technical event that reduces the total mining reward for bitcoin miners, is scheduled for later this month.
See Also: Dogecoin Soars As Whale Moves 200 Million DOGE From Robinhood To Unknown Wallet
As of Apr. 4. the total crypto market capitalization stood at around $2.5 trillion. A doubling of the market would imply a new total crypto market cap of $5.2 trillion.
Garlinghouse also expressed optimism about potential positive regulatory changes in the U.S., which could further boost the crypto market. This optimism stems from hopes that the next administration will adopt more crypto-friendly policies.
Bitcoin, the world’s leading digital currency, has been the primary driver of gains in the broader market. As of April 1, it accounted for about 49% of the entire crypto market, with a market capitalization of $1.3 trillion.
Why It Matters: Garlinghouse’s prediction comes on the heels of his previous comments on the inevitability of spot ETFs.
He had also expressed interest in backing an XRP-focused ETF. These developments, along with the potential for massive liquidations if Bitcoin reaches a certain level, as warned by a crypto analyst, and the possibility of Dogecoin (DOGE) surpassing Ripple (XRP) in market value, all add to the dynamic and unpredictable nature of the crypto market.
Read Next: Trader Turns $15K Into $5.5M With BRETT, Refuses To Sell: ‘This Is The SHIB Of This Bull Run’
Engineered by Benzinga Neuro, Edited by
Kaustubh Bagalkote
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you.
Learn more.
Photo via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.