Ripple CEO Brad Garlinghouse recently shared his bullish outlook for the future of the crypto market, predicting a potential total market capitalization of $5 trillion by the end of 2024. In a recent interview with CNBC, Garlinghouse highlighted several key factors driving his optimism, including macroeconomic trends and regulatory developments.
One pivotal element in Garlinghouse’s forecast is the anticipated launch of the first spot US-based Bitcoin exchange-traded funds (ETFs) and the upcoming Bitcoin halving event. The Bitcoin halving, which occurs every four years and reduces mining rewards by half, has historically been associated with price surges. Following the last halving in May 2020, Bitcoin’s price soared from $8,590 to $69,600, showcasing the impact of this event on the market.
Since the 2020 halving, the total crypto market cap has surged over 1,040%, reaching $2.72 trillion by April 8, 2024, in the Asian market time frame, according to data from CoinGecko. Garlinghouse also emphasized the importance of positive regulatory developments in the United States, highlighting the potential for increased clarity in the regulatory landscape.
With regulatory clarity comes stability, which in turn can attract traditional industry players to the crypto sector. Ripple, as a significant player in the industry, has faced its share of regulatory challenges, particularly in its legal battle with the SEC regarding the sale of XRP. Garlinghouse’s positive outlook reflects the industry’s collective hope for progress on the regulatory front.
Industry experts share Garlinghouse’s optimism, with many predicting Bitcoin’s price to surpass $100,000 by the year’s end. Institutional interest in crypto-based spot ETFs, including those focused on Ethereum (ETH), further bolsters this positive sentiment. Additionally, venture capital heavyweights such as Galaxy Digital, Paradigm, and a16z are continuing to invest substantially in crypto and Web3 projects, highlighting the significant potential of this asset class for the future.
