Based on the perspective of Brad Garlinghouse, the CEO of blockchain firm Ripple, the cryptocurrency sector might be at the brink of experiencing a significant surge.
During an interview with CNBC, Garlinghouse expressed his belief that the crypto market’s total valuation could reach an astounding $5 trillion by the year 2024, representing a doubling of its current size.
“I’ve been around this industry for a long time, and I’ve seen these trends come and go,” Garlinghouse said. “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.”
A positive perspective on the situation is based on a few crucial elements. First, the launch of the initial US Bitcoin spot Exchange-Traded Funds (ETFs) has occurred. Second, an important Bitcoin halving event is approaching.
The total market capitalization of cryptocurrencies, as of the latest available data, is approximately $2.59 trillion. This figure represents the combined value of all digital assets in the market.
Crypto Embraces Wall Street
ETFs’ entry into the crypto world is considered a major shift. With these funds, traditional investors and individuals can invest in bitcoin without dealing with its intricacies of possession and safekeeping. The potential influx of institutional capital may bring welcomed calmness and credibility to the unpredictable bitcoin market.
Bitcoin Halving: A Supply Squeeze?
Later this month, the Bitcoin reward reduction, or “halving,” is scheduled to take place. Approximately every four years, this occurrence reduces the compensation provided to miners for confirming Bitcoin transactions.
A decrease in the number of new bitcoins being released, combined with a possible continuation or even increase in demand, might theoretically cause the price of bitcoin to go up. In the past, bitcoin’s halvings have resulted in price increases, but this is not a guarantee for the future.
Regulatory Hurdles Remain
Although Garlinghouse remains hopeful regarding the regulatory situation, obstacles remain. The US Securities and Exchange Commission (SEC), known for its cautious stance on regulation, is currently engaged in legal disputes with multiple entities, among them Ripple itself.
Under the leadership of Gary Gensler, the Securities and Exchange Commission (SEC) has prioritized investor protection. However, this approach has brought about some ambiguity within the affected industries.
Garlinghouse thinks the US government might take a more friendly approach to cryptocurrencies before the elections, but it’s still uncertain how regulations will shape up.
Having clear-cut and uniform regulations in place would significantly benefit the industry. It would instill trust among stakeholders and inspire greater financial commitment.
The Road Ahead For Crypto
Although there are risks involved, the crypto market shows signs of hopefulness based on the entrance of institutional investments through ETFs and the anticipated price rises caused by the bitcoin halving event.
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2024-04-08 20:11