Crypto is back, up over 50% in 2024 and 200% since 2023. Currently, the asset class is worth $2.6 trillion. One CEO believes it has room to grow. Ripple CEO Brad Garlinghouse, who founded XRP (CRYPTO: XRP), told CNBC that various macroeconomic forces might converge in 2024 and propel the crypto market to $5 trillion, nearly tripling from today's pricing. Despite appearing outrageous, he may be accurate.
Institutional involvement is Garlinghouse's main rationale for predicting a crypto market treble in 2024. Retail investors like you and me drove crypto's rise for most of its history. The long-awaited entrance of deep-pocketed institutional investors began in 2024.
Wall Street now has direct access to Bitcoin after the SEC approved 11 spot Bitcoin ETFs in January. In their initial few months, spot ETFs have produced large trading volumes, straining Bitcoin's (CRYPTO: BTC) supply due to years of pent-up demand.
Companies backing these ETFs bought three times the Bitcoin mined in March. The ETFs have had almost $12 billion in net inflows since their launch, making them one of the most successful ETF groups ever.
According to Garlinghouse, this extra demand will fight for a reduced supply following Bitcoin's fourth halving. This halving on April 20 will lower Bitcoin's inflation rate from 1.75% to 0.8%. According to Garlinghouse, "doesn't take an economics major to tell you what happens when supply contracts and demand expands." This suggests a price increase after the halving.
Example #1 of Garlinghouse's forecast. Bitcoin, the most valued cryptocurrency on the market, should lead the asset class as Wall Street's biggest names enter the game and increase demand.
Crypto regulatory boost possible Reason No. 2: With Bitcoin ETFs on fire, Garlinghouse believes Wall Street's increased interest in crypto will drive US officials to pass clear and supportive crypto regulations. Garlinghouse said, "The U.S. is still the world's largest economy, but it's one of the most hostile crypto markets. I expect that to change too."
It's an election year, so pro-crypto lawmakers may run in Washington, D.C., and courtroom conflicts could favor crypto. If the world's largest economy joins crypto in 2024, the asset class should accelerate toward Garlinghouse's projection that crypto's value will double.
How far crypto can go 2024 Bitcoin's halving and better legislation could help the crypto sector surpass Garlinghouse's $5 trillion estimate. However, previous Bitcoin halvings suggest that a $5 trillion market cap may be only the beginning. The latest Bitcoin halving in 2020 saw the crypto market grow fivefold from $200 billion to over $1 trillion. Eventually, it reached approximately $3 trillion in 2021.
A price estimate of $7.5 trillion is possible if this year follows 2020's trajectory. That may sound amazing, but crypto predictions generally underestimate its potential. If Wall Street gets access to Bitcoin and crypto-friendly regulation passes, 2024 might be the year crypto becomes a real asset class as institutional money enters. This crypto bull cycle will be unlike any other, but to what extent is unknown.
stay turned for development