Ripple CEO Brad Garlinghouse has predicted that the market capitalization of cryptocurrency will double, hitting $5 trillion by the end of the year.
The crypto founder gave reasons for his speculation, citing the first US spot Bitcoin ETF and the upcoming Bitcoin Halving event.
CryptoDaily quoted Brad as saying that the recent spot Bitcoin ETF in the US is attracting significant investment in cryptocurrency from major institutional players.
On January 10, the United States Security and Exchange Commission gave the nod for spot Bitcoin ETF in the country, allowing retail and institutional investors to gain exposure to Bitcoin without directly owning the underlying asset.
This created a significant shift in the finance world as the creation of a spot Bitcoin ETF was perceived as a partial endorsement of cryptocurrency by the US SEC.
The current combined market capitalisation of the global crypto market stands at $2.7 trillion but Ripple founder predicts that there will be big transactions before the end of 2024.
Bitcoin has experienced a recent surge in value owing to two events. The first is the influx of capital into the recently launched spot Bitcoin ETF by major financial players and the second is that market participants expect a reduction in interest rates from the Federal Reserve.
This move has historically been viewed as a big win for assets such as Bitcoin.
Additionally, a special event known as the Bitcoin Halving event set to be held on the 24th of April has driven a strong bullish trend among crypto enthusiasts driving up the price of Bitcoin.
Regulatory clarity has been one of the bottlenecks faced by crypto firms in the United States and the world. Many crypto firms have come under heavy crackdowns by regulatory bodies, especially in the United States.
The Ripple CEO explained that with 2024 being an election year, there is a high level of optimism amongst crypto users that the next administration will be a lot more favorable to crypto firms in terms of regulation and policies.
Brad believes that increased regulatory clarity would help propel the crypto industry to new heights.