Ripple‘S XRP/USD CEO, Brad Garlinghouse on Monday predicted that the total cryptocurrency market capitalization could rise to $5 trillion, solidifying bullish expectations for the cryptocurrency market,
What happened: Garlinghouse’s confidence comes from key industry developments, particularly the launch of the first commercial in the US Bitcoin Bitcoin/USD exchange-traded funds (ETFs) and the expected Bitcoin halving event.
Having witnessed the ups and downs of the cryptocurrency industry over the years, Garlinghouse highlighted the significant impact of macroeconomic factors, such as the introduction of ETFs, in attracting institutional investment to the sector for the first time.
“I am very optimistic. I think macro trends, big picture like ETFs, are driving real institutional money for the first time,” Garlinghouse told CNBC.
The CEO highlighted the fundamental economic principle that a decrease in supply coupled with an increase in demand typically leads to higher prices.
This principle, in his opinion, is currently in play in the cryptocurrency market, especially as Bitcoin’s halving event approaches.
This event, which reduces the reward for mining bitcoin, thus limiting supply, is scheduled for later this month, having last occurred in 2020.
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Because matter: The US Securities and Exchange Commission approved the first spot Bitcoin ETFs in the United States on January 10, making it easier for both institutional and retail investors to engage indirectly with Bitcoin through US exchanges.
This development, together with the halving, is set to drastically influence market dynamics.
With a total cryptocurrency market capitalization of around $2.6 trillion as of April 4, Garlinghouse’s forecast implies an expected doubling to $5.2 trillion.
This comes as Bitcoin continues to perform robustly, having surged more than 140% year-over-year and hitting a record high of over $73,000 on March 13, according to CoinMarketCap.
What’s next: The cryptocurrency landscape, especially with these crucial developments, will be a central topic at Benzinga’s upcoming Future of Digital Assets conference on November 19.
This event will delve into the transformative potential of these macro factors on the cryptocurrency market, exploring the implications of ETFs, halving events and institutional investments on the future trajectory of digital assets.
Read next: BlackRock Adds Goldman Sachs Among New APs for Spot Bitcoin ETF
Image created using artificial intelligence with Midjourney.