The cryptocurrency market will hit a market capitalization of $5 trillion, according to Ripple chief executive officer Brad Garlinghouse. Basing his predictions on multiple macro factors, Garlinghouse estimated his target to be reached by the end of 2024.
According to Garlinghouse, the introduction of the first Bitcoin ETFs, along with the hype around the upcoming Bitcoin halving, are the key pillars behind his rationale. As an entrepreneur in the industry for several years, Garlinghouse expressed his optimism, stating:
I think the macro trends, the big picture things like the ETFs, they’re driving for the first time real institutional money. You’re seeing that drives demand, and at the same time demand is increasing, supply is decreasing.
He ended his statement rhetorically, adding that “it doesn’t take an economics major” to realize what happens during time times of high demand and low supply. The Ripple CEO’s faith in Bitcoin has been bolstered by the success of Bitcoin ETFs. Further, the Bitcoin halving is also set to cut down Bitcoin mining rewards, drying up the supply of fresh BTC.
The overall market cap of the crypto industry … is easily predicted to double by the end of this year … [as it’s] impacted by all of these macro factors,” Garlinghouse added.
The overall market capitalization for cryptocurrencies currently stands at $2.6 trillion. Based on his prediction, Garlinhouse expects this number to hit $5.2 trillion within the coming 8 months. This would require Bitcoin’s price to be significantly higher, considering its 49% market share.
The world’s largest cryptocurrency is already up 140% over the past year. Further, since the last halving in 2020, the cryptocurrency market capitalization has surged more than 1000%.
Garlinghouse also discussed the positive regulatory scene within the United States. This is another factor that he sees as a major propellant toward his $5 trillion-plus target. With 2024 being an election year for the nation, he expects “more clarity” for crypto regulatory frameworks.
“The U.S. is still the largest economy in the world,” the Ripple CEO said. He asserted that the U.S. has been a “hostile” environment for the cryptocurrency sector. However, he expects that to change this year.
Garlinghouse’s sentiment regarding U.S. crypto regulations has also been echoed by Rep. Patrick McHenry, the Republican chair of the House Financial Services Committee. McHenry has recently highlighted that he expects Congress to pass crypto-focused legislation this year.
