Bitcoin and the wider cryptocurrency market are poised for significant growth this year, predicts Brad Garlinghouse, CEO of blockchain startup Ripple.
In a recent interview with CNBC, Garlinghouse predicted that the total market capitalization of the crypto industry could double to $5 trillion by the end of 2023.
Garlinghouse pointed to several macroeconomic factors driving this bullish outlook, including the recent approval of the first U.S. spot Bitcoin exchange-traded funds (ETFs) and the upcoming Bitcoin “halving” event. The spot ETFs, which began trading on U.S. stock exchanges in January after being approved by the SEC, allow both institutions and retail investors to gain exposure to Bitcoin without directly owning the digital asset.
Meanwhile, the Bitcoin halving, a technical event occurring roughly every four years that cuts the mining reward in half, is expected to take place later this month and could further constrict supply while demand grows. Garlinghouse told CNBC:
I’ve been around this industry for a long time, and I’ve seen these trends come and go. […] I’m very optimistic. I think the macro trends, the big-picture things like the ETFs, they’re driving for the first time real institutional money.
The cryptocurrency market has already seen impressive gains over the past year, with Bitcoin rising more than 140% and hitting a record high above $73,000 in March before pulling back. As the largest cryptocurrency by market cap, accounting for about 49% of the entire crypto market’s value, Bitcoin’s performance heavily influences the broader digital asset space.
An evolving landscape
Beyond the technical and macroeconomic drivers, Garlinghouse also sees positive regulatory momentum in the U.S. as a potential catalyst for the crypto market this year. With 2023 being an election year, there is optimism that the next administration may take a more accommodative stance toward the industry.
This comes despite the current SEC, under Chair Gary Gensler, taking an aggressive enforcement approach against crypto companies, including Ripple itself which is fighting a lawsuit alleging it illegally sold its XRP token as an unregistered security.
One of the things actually I’ll say on the macro tail winds for the industry: I think we will get more clarity in the United States. […] The U.S. is still the largest economy in the world, and it’s unfortunately been one of the more hostile crypto markets. And I think that’s going to start to change, also.”
Garlinghouse is not alone in his bullish predictions for the crypto market. Marshall Beard, COO of U.S. crypto exchange Gemini, recently told CNBC he expects Bitcoin to reach $150,000 later this year amid the confluence of factors like the halving, ETF launches, regulatory developments, and overall adoption and activity in the space.
Back in March, Bitcoin reached a new all-time high, surpassing the $71,000 mark for the first time. This surge came on the heels of the United Kingdom’s Financial Conduct Authority giving the green light to cryptocurrency exchange-traded products.
The upward trajectory of Bitcoin’s price gained momentum in January when the United States securities regulator approved spot Bitcoin exchange-traded funds (ETFs). This approval was a catalyst for the cryptocurrency’s value, which breached the $70,000 threshold just last week. In a similar vein, Ethereum (ETH) also achieved a significant milestone on Monday, crossing the $4,000 mark.