Ripple CEO Predicts Cryptocurrency Market to Surpass $5 Trillion by Year-End

The cryptocurrency market capitalization is expected to double in 2024, exceeding $5 trillion. This forecast was made by Ripple CEO Brad Garlinghouse in an interview with CNBC.

He expressed being “very optimistic” about macroeconomic trends such as the introduction of spot Bitcoin ETFs in the US, which “bring real institutional money for the first time.”

Garlinghouse also pointed to the upcoming halving, which will halve the reward for mined blocks.

“You see this driving demand while supply decreases. You don’t need an economics degree to explain what’s happening,” he stated.

In March, CoinShares’ head of research James Butterfill suggested that Bitcoin exchange-traded funds might face a wave of demand in the coming months. Bitwise’s Chief Investment Officer Matt Hougan predicted a 3% allocation of the leading cryptocurrency in asset managers’ portfolios.

Another factor Garlinghouse believes will push the crypto market to new heights is potential positive changes in US regulatory policy following the arrival of a new administration.

“I actually want to say one thing about the macroeconomic tailwinds for the industry: I believe we will get more clarity in the United States. It remains the largest economy in the world and, unfortunately, one of the most hostile markets to cryptocurrencies. And I think that will start to change,” said the Ripple chief.

In December 2020, the SEC filed a lawsuit against the company, accusing it of selling unregistered securities in the form of XRP worth about $1.3 billion. Garlinghouse and Ripple co-founder Chris Larsen were also named as defendants.

In July 2023, Judge Analisa Torres ruled in favor of Ripple. She determined that programmatic sales and other distributions of the token do not constitute an offer and sale of investment contracts.

However, according to the verdict, sales of coins to major industry players violated US securities laws. In October, the SEC dropped charges against Garlinghouse and Larsen.

In March, it was revealed that the regulator intends to seek a $2 billion penalty for the firm.

In April, Ripple announced plans to launch its own stablecoin by the end of 2024.