The CEO of Ripple Brad Garlinghouse has predicted the cryptocurrency market to double in market value, reaching $5 trillion by the end of 2024.
Brad’s predictions are based on some factors which include the approval of 11 Bitcoin Exchange Traded Funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), which marked a significant milestone in the history of crypto, as well as the upcoming halving event.
He said,
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“I have been around this industry for a long time, and I have seen the trends come and go. I am very optimistic. I think the macro trends, the big-picture things like the ETFs, they are driving for the first time real institutional money. You are seeing that drives demand, and at the same time demand is increasing, and supply is decreasing. That doesn’t take an economics major to tell you what happens when supply contracts and demand expands”.
The SEC’s decision to approve 11 Bitcoin ETFs was a historic moment, introducing a new asset class to the global financial markets. This move is expected to lower barriers to entry for investors, simplifying access to Bitcoin investments through traditional investment channels.
Also, the ETF approval has triggered a global ripple effect, with other financial hubs like Hong Kong gearing up to launch additional Bitcoin ETFs. The gradual widespread adoption globally underscores Bitcoin’s growing acceptance and its potential to become a standard fixture in investment portfolios worldwide.
Notably, it is poised to significantly impact Bitcoin’s market value. Analysts predict a significant increase in demand, with price targets ranging from a short-term $100,000 to $150,000 and a long-term potential of $500,000 within the next 3 to 5 years.
It is worth noting that financial advisors across the globe are beginning to recognize Bitcoin as a viable asset class and will now recommend varying allocations in investment portfolios. This change reflects a shift in the perception of Bitcoin from a speculative instrument to a legitimate investment option.
On the other hand, the Bitcoin upcoming halving event in April, where the reward for mining new blocks is halved, is anticipated to further enhance the crypto asset scarcity, thus potentially driving up its value. This supply shock, combined with a wall of institutional money that is going to come, contributes significantly to Bitcoin’s appeal as a long-term investment.
As Bitcoin continues to make strides into mainstream finance, it’s not only reshaping the investment landscape but also challenging the traditional notions of finance and asset management. With institutional backing, reduced barriers to entry, and a growing acceptance among the general public, Bitcoin is poised to play a pivotal role in the future of global finance.
With the crypto market currently valued at around $2.68 trillion, if eventually the market doubles by the end of the year, it would likely hit a market cap of $5.2 trillion.