Ripple CEO, Brad Garlinghouse, has predicted the crypto market to cross the $5 trillion threshold by the end of the year. According to the CEO of the blockchain company, the total market capitalization of the crypto market has what it takes to double its size before 2024.
Garlinghouse backed his prediction by outlining several factors that he thinks will be the driving force behind the meteoric rise he envisions for the crypto market. The CEO highlighted the upcoming Bitcoin halving, an event which has over the years, proven to be a major force in driving up the value of Bitcoin while taking many altcoins along for the ride.
Garlinghouse also touched on the launch of the first U.S. spot bitcoin exchange-traded fund (ETF), which is attracting institutional investors, who once trod lightly in that field.
Speaking with CNBC, Garlinghouse described those two developments as macro factors, and stated, “I’ve been around this industry for a long time, and I’ve seen these trends come and go. 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.”
“You’re seeing that drives demand, and at the same time demand is increasing, supply is decreasing,” the Ripple CEO added. “That doesn’t take an economics major to tell you what happens when supply contracts and demand expands.”
The United States Securities and Exchange Commission approved the first U.S. spot bitcoin ETFs on January 10, giving institutional investors the much-awaited exposure to the Bitcoin market, without directly owning the underlying asset. The first U.S. spot bitcoin ETFs were approved on Jan. 10 by the U.S. Securities and Exchange Commission. They trade on U.S. stock exchanges.
The next Bitcoin halving is scheduled to happen on April 20 this year. The pre-programmed event happens every four years or after the mining of every 210,000 blocks. The halving event halves the total mining reward for a new block.
Bitcoin halving events are often accompanied by pre-halving and post-halving rallies where prices usually go on a bull run in the subsequent months and years. The event also generates a lot of buzz in the crypto space, as the months leading to it are filled with nothing but interest and speculation.
According to Garlinghouse, all these factors make his prediction a very easy one. The market has already gained over 60% value since January, reaching $2.6 trillion on April 4.