Ripple CEO Brad Garlinghouse is bullish on the crypto market. He predicts that the industry’s combined market capitalization will double to $5 trillion by the end of 2024.
Garlinghouse cited several macro factors that he believes will drive this growth. This includes the arrival of the first U.S. spot bitcoin exchange-traded funds (ETFs) and the upcoming bitcoin “halving” event.
The total crypto market capitalization was around $2.6 trillion as of April 4, 2024. If the market were to double, it would imply a new total crypto market cap of $5.2 trillion.
Institutional Adoption and Bitcoin Halving
Garlinghouse highlighted the approval of the first U.S. spot bitcoin ETFs on January 10, 2024. It is a significant driver of institutional money entering the crypto market. These ETFs allow institutions and retail investors to gain exposure to bitcoin without directly owning the underlying asset.
Another key factor he pointed to is the upcoming Bitcoin halving event. It takes place roughly every four years. This event halves the total mining reward to Bitcoin miners and volunteers on the Bitcoin network who use high-powered computers to verify transactions and mint new tokens.
The last halving event occurred in 2020 – the next one is slated to happen later in 2024.
Bitcoin’s Price Rally
Bitcoin has been the main token driving gains for the broader cryptocurrency market. It has been rising more than 140% in the last 12 months.
According to CoinGecko data, the world’s digital currency hit a record high above $73,000 on March 13, 2024, though it has since fallen below the $70,000 level.
Bitcoin accounts for about 49% of the entire crypto market. It has a market capitalization of $1.3 trillion as of April 1, 2024.
Positive Signs on U.S. Crypto Regulation
Ripple CEO, Garlinghouse, also sees the possibility of positive regulatory momentum in the United States as a factor that could push the crypto market to new highs. He believes the upcoming 2024 election could lead to a more accommodating policy focus on the crypto industry.
The current SEC, under Chair Gary Gensler has been aggressive in its enforcement of crypto companies, including Ripple itself. The SEC targeted Ripple with a securities lawsuit alleging it illegally sold XRP, a cryptocurrency Ripple is closely associated with, in unregistered securities deals. Ripple denies the claims and is fighting the suit.
Other Crypto Bulls Predict Massive Gains
Garlinghouse is not the only crypto bull predicting outsized gains for the crypto market this year. Marshall Beard, the chief operating officer of U.S. crypto exchange Gemini, recently told CNBC at a crypto conference in London that he expects the bitcoin price to rise to $150,000 later in 2024.
Conclusion
The Ripple CEO’s prediction that the crypto market will double in size to $5 trillion by the end of 2024 is a bold and optimistic outlook.
The arrival of the first U.S. spot bitcoin ETFs, the upcoming bitcoin halving event, and the potential for more favorable regulatory conditions in the United States all point to significant growth potential for the cryptocurrency industry.
While Garlinghouse’s prediction may be on the higher end, other industry experts, like Gemini’s COO, are also forecasting massive gains for Bitcoin and the broader crypto market in the coming year.
Investors will be closely watching the key macro factors that Garlinghouse and others have highlighted to see if the crypto market can indeed reach the $5 trillion mark by the end of 2024.
