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Prepare for a cryptocurrency market surge, predicts Brad Garlinghouse, the CEO of Ripple. The driving forces behind this bullish outlook are numerous, most notably the introduction of the first U.S. spot bitcoin exchange-traded fund (ETFs) and the impending “halving” of bitcoin.
Factors Fueling Crypto’s Upswing
ETFs and Institutional Cash Inflow
Garlinghouse highlights the impact of ETFs, which allow investors to access cryptocurrencies without owning the underlying asset. This, in turn, attracts institutional capital, bringing legitimacy and stability to the market.
Bitcoin Halving: Supply Squeeze Meets Rising Demand
The bitcoin halving, scheduled for later this month, reduces the rewards given to miners, thereby decreasing the supply of new bitcoin. As supply tightens while demand increases, basic economic principles dictate a price rise.
Positive Regulatory Signs in the US
Garlinghouse anticipates a shift in the US regulatory landscape, with a hope that the forthcoming political season will usher in a more crypto-friendly administration. This could provide clarity and remove uncertainties hindering industry growth.
Key Crypto Indicators
As of April 4th, the total crypto market capitalization stood at approximately .6 trillion. Garlinghouse predicts a doubling of this value to a total market cap of .2 trillion by year-end. Bitcoin, currently representing 49% of the market, has witnessed a substantial 140% growth over the past year.
Crypto Bulls Predict Mammoth Gains
Marshall Beard, COO of Gemini, shares his optimistic vision, anticipating bitcoin’s price to reach 0,000 within the year. He cites market activity, adoption, regulation, and supply shocks as catalysts for this potential surge.
Ripple’s Legal Battles
It’s worth noting that Ripple itself is embroiled in a legal dispute with the SEC, which alleges that XRP is an unregistered security. Ripple contests these claims and is actively defending its position.
Data sourced from: cnbc.com
