According to Brad Garlinghouse, CEO of Ripple, cryptocurrencycurrency market will have a valuation of more than $5 trillion by the end of this year.
The market value is about to double, he says. He stated in a Sunday interview with CNBC that a combination of macroeconomic factors will propel this possible rise. The introduction of the US spot Bitcoin exchange-traded funds and the approaching Bitcoin halving are two of these.
He claimed that institutional investors are now making sizable investments in ETFs in particular for the first time.
On Monday, the overall market capitalization of the cryptocurrencycurrency market was $2.7 trillion, with Bitcoin trading at roughly $70,000. A hypothetical doubling of the market capitalization would yield a new total value of $5.2 trillion.
There are two main reasons why the value of bitcoin has increased. To begin with, a sizeable amount of money has been invested in recently introduced spot Bitcoin ETFs. The second expectation among market players is that the Federal Reserve would soon lower interest rates. For riskier assets like Bitcoin, this has traditionally been seen as a good thing.
The rate at which fresh supply enters circulation is also slowed down by Bitcoin’s pre-programmed halving events, which take place every four years. Bitcoin’s price is generally under pressure to rise because to this supply reduction and the continual halving of mining rewards.
