Ripple’s CEO Foresees Crypto Market Doubling to $5 Trillion Amid Positive Trends

Brad Garlinghouse, CEO of Ripple, projects a significant expansion in the cryptocurrency market, expecting its valuation to reach $5 trillion by the end of this year. In a recent CNBC interview, Garlinghouse attributed this anticipated growth to several key factors, including the introduction of US spot Bitcoin exchange-traded funds (ETFs) and the upcoming Bitcoin halving event, both of which are drawing substantial institutional investment into the market for the first time.

Currently, the crypto market’s capitalization stands at $2.7 trillion, with Bitcoin trading at around $70,000. Doubling the market cap would elevate the total valuation to approximately $5.2 trillion. The recent boost in Bitcoin’s value can be attributed to the influx of capital into new Bitcoin ETFs and expectations of a potential interest rate cut by the Federal Reserve, traditionally seen as favorable for risk assets like Bitcoin.

Bitcoin’s halving events, which occur every four years and reduce the pace of new Bitcoin entering the market, along with a reduction in mining rewards, are also expected to contribute to price increases.

Moreover, Garlinghouse emphasized the role of regulatory clarity and the anticipated supportive approach of the upcoming presidential administration in the US as crucial drivers for the market’s growth. He noted the US’s significant global economic influence and its previously restrictive stance on cryptocurrency, which he believes is set to change.

Ripple, having faced legal challenges with the SEC in 2020, has since made strides, indicated by a favorable court ruling. The company is also expanding its offerings, planning to launch a stablecoin pegged to the US dollar, aligning with predictions that the global stablecoin market will reach over $2.8 trillion by 2028.