Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
Ripple‘s (CRYPTO: XRP) CEO, Brad Garlinghouse on Monday predicted the total cryptocurrency market capitalization could soar to $5 trillion, solidifying bullish expectations for the cryptocurrency market,
What Happened: Garlinghouse’s confidence stems from key developments in the sector, notably the launch of the first U.S. spot Bitcoin (CRYPTO: BTC) exchange-traded funds (ETFs) and the anticipated Bitcoin halving event.
Having witnessed the ebbs and flows of the cryptocurrency industry over the years, Garlinghouse highlighted the significant impact of macroeconomic factors, such as the introduction of ETFs, in attracting institutional investments into the space for the first time.
“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," Garlinghouse told CNBC.
The CEO pointed out the fundamental economic principle that a decrease in supply coupled with an increase in demand typically leads to higher prices.
This principle, he believes, is currently at play within the cryptocurrency market, especially as the Bitcoin halving event approaches.
This event, which reduces the reward for mining bitcoin, thereby constraining supply, is set to occur later this month, having last occurred in 2020.
Also Read: EXCLUSIVE: The Top Crypto VC Funding Trends In 2024
Why It Matters: The U.S. Securities and Exchange Commission on Jan. 10 approved the first U.S. spot Bitcoin ETFs, facilitating both institutional and retail investors to engage with Bitcoin indirectly through U.S. stock exchanges.
This development, along with the halving event, is poised to drastically affect the market’s dynamics.
With the total crypto market capitalization standing at approximately $2.6 trillion as of April 4, Garlinghouse’s prediction implies an anticipated doubling to $5.2 trillion.
This comes as Bitcoin continues to perform robustly, having surged more than 140% year-over-year and reaching a record high of over $73,000 on March 13, as per CoinMarketCap.
What’s Next: The cryptocurrency landscape, particularly with these pivotal developments, is set to be a central theme at Benzinga’s upcoming Future of Digital Assets conference on Nov. 19.
This event will delve into the transformative potential of these macro factors on the cryptocurrency market, exploring the implications of ETFs, halving events, and institutional investments on the future trajectory of digital assets.
Read Next: BlackRock Adds Goldman Sachs Among New APs For Spot Bitcoin ETF
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