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Brad Garlinghouse, CEO of Ripple, projects that the cryptocurrency market’s combined market capitalization could surpass $5 Trillion in 2024.
Garlinghouse attributes the potential gains in the cryptocurrency market cap to factors such as the arrival of the US Spot Bitcoin ETF and the upcoming Bitcoin halving event.
How Brad’s Prediction Can True
Brad has been involved in the industry for a long time and is optimistic about the macro trends. He believes that ETFs are driving real institutional money into the market for the first time, leading to increased demand while supply decreases.
Pro Ripple attorney Bill Morgan has pointed out inconsistencies between the regulator’s argument against Ripple and the evidence on summary judgment briefings. Morgan says that the SEC likely has no admissible evidence to show that sales by institutions with higher discounts had any significant impact on XRP price. It ended up labeling it an allegation by speculation.
US To Soon Cut Rates & Its Impact On Crypto Market
The relationship between interest rates and inflation is inverse. When people have more money to spend, the demand for stocks, commodities, and goods increases, which leads to an increase in their prices. To tackle inflation, the central bank (Federal Reserve) can increase the interest rates on loans given to commercial banks.
Compared to bonds and assets, the crypto market is considered a riskier investment. Therefore when the risk-free rate (which is the government bond) is giving attractive returns, investors would flush their crypto and equity investments.
This means that investors who are averse to risks would allocate their capital into crypto investments as a last resort. However, the rate cuts are expected in the 3rd half of this calendar year.
After a rate cut, the economy will thrive, and as a result, money will flow into the crypto market after equities and bonds. It fastens the dispersal of loans, which pushes corporations and retailers to borrow and invest money in the markets.
SEC & Ripple
The US Securities and Exchange Commission approved the first US spot bitcoin ETFs, allowing investors to gain exposure to bitcoin without directly owning it. The Bitcoin halving halves the total mining reward to Bitcoin miners, which happens roughly every four years.
As Brad Garlinghouse stated, the overall market cap of the crypto industry will double by the end of this year. Bitcoin accounts for about 49% of the entire crypto market, with a market capitalization of $1.3 Trillion as of April 1st.
Garlinghouse believes that positive regulatory momentum in the United States could push the crypto market to new highs. The SEC targeted Ripple with a securities lawsuit alleging that it illegally sold XRP.
Summary
Ripple’s CEO is optimistic about the industry’s macro trends. ETFs are driving real institutional money into the market, leading to increased demand while supply decreases. Morgan says that sales by institutions with higher discounts had no significant impact on XRP price. After a rate cut, the economy will thrive, and money will flow into the crypto market after equities and bonds.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of monetary loss.
Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.