By year’s end, the crypto industry will have a valuation of more than $5 trillion, according to Ripple CEO Brad Garlinghouse.
He believes that the market value is about to double. In an interview that was released on Sunday, he stated that a combination of macroeconomic factors will propel this possible development. These include the approaching Bitcoin halving event and the opening of the US spot Bitcoin exchange-traded funds.
For the first time, he claimed, institutional investors are making sizable investments in ETFs in particular.
The total market capitalization of the cryptocurrency industry was $2.7 trillion on Monday, with the price of Bitcoin hovering around $70,000. The entire value would increase to $5.2t if the market cap were to double.
Two reasons have contributed to the recent increase in the value of bitcoin. First off, recently introduced spot Bitcoin ETFs have seen a substantial inflow of funds. Second, market players believe that the Federal Reserve will soon cut interest rates. In the past, risk assets like Bitcoin have been seen as benefiting from this.
Moreover, the predetermined halving events of Bitcoin, which take place every four years, help to slow down the rate at which new supply comes into circulation. The continuous halving of mining rewards in addition to this supply reduction tend to drive up the price of Bitcoin.
Ripple CEO: New Administration and Regulatory Clarity Are Essential for the Crypto Boom
Garlinghouse found another element that might propel the cryptocurrency market to all-time highs: the likelihood of favorable regulatory changes in the United States. Crypto enthusiasts are hopeful that the incoming presidential government would take a more accommodative approach to the sector.
Increasing regulatory clarity is one of the major macroeconomic tailwinds driving the business ahead, according to him.
According to him, the US is still the country with the biggest economy in the world, but it has also had one of the more hostile cryptocurrency markets. And he believes that will also begin to alter.
The SEC filed a lawsuit against Ripple in late 2020, claiming that the company had offered unregistered securities in violation of securities laws.
In that lawsuit, Ripple won partially because US District Court Judge Analisa Torres rendered a decision that refuted the SEC’s assertion.
Ripple recently declared that it would launch a stablecoin linked to the US dollar this year. Industry forecasts predict that by 2028, the global stablecoin market would have grown to a value of almost $2.8 trillion.
