Yesterday, in a post on social media platform X (formerly known as Twitter), Ripple CEO Brad Garlinghouse shared his thoughts on the current state of the cryptocurrency market. Garlinghouse, who has experienced multiple โcryptocurrencies are backโ cycles, emphasized the importance of real-world utility that accompanies the current bullish sentiment.
Garlinghouse's comments come amid a surge in Bitcoin ETF volumes following the approval of 11 spot Bitcoin ETFs by the US on January 10, 2024. The approval of these ETFs, in particular that of BlackRock, has generated significant gains for both Bitcoin and altcoins since then. the beginning of the year. Over the past 30 days, Bitcoin (BTC) and Ripple (XRP) have seen impressive gains of 48.71% and 31.90%, respectively.
The Ripple CEO also highlighted the upcoming Bitcoin halving, which is expected to occur in April 2024. A Bitcoin halving is an event that occurs approximately every four years, where the reward for mining new blocks of Bitcoin is halving. This event is important because it reduces the speed at which new Bitcoins are created, thus limiting the supply of new coins entering the market. Historically, Bitcoin halvings have been associated with bull runs in the cryptocurrency market, as reduced supply can lead to greater demand and consequently higher prices.
Garlinghouse's observation that the broader crypto market is following Bitcoin's lead is consistent with historical trends. Bitcoin, being the largest and most well-known cryptocurrency, often sets the tone for the entire market. When Bitcoin experiences significant gains or losses, altcoins tend to do the same.
However, the Ripple CEO's main point in his post is the crucial role of real-world utilities in sustaining the current bullish momentum. Garlinghouse emphasizes that while the current market surge and anticipation surrounding the Bitcoin halving are positive signs, it is imperative that this optimism is accompanied by practical, real-world applications of blockchain technology and cryptocurrencies.
A article published by Bloomberg News on March 12 reported on Bitcoin's record run, fueled by the unprecedented influx of capital into crypto products and the impending reduction in digital token supply growth. The flagship cryptocurrency hit an all-time high of nearly $72,881 on Monday and was trading at $71,815 as of 9:10 a.m. UTC on Tuesday. The article also mentions that, according to a report by CoinShares International Ltd., a record $2.7 billion flowed into crypto assets last week, with most of that capital going into Bitcoin.
Bloomberg identified the success of recently approved US-listed spot Bitcoin ETFs as a key driver of the recent momentum. He went on to say that spot Bitcoin ETFs from major players like BlackRock Inc. and Fidelity Investments have attracted net inflows of around $9.5 billion to date. The article also noted that the London Stock Exchange had Announced on Monday its willingness to accept applications for Bitcoin and Ether ETNs in the United Kingdom, while Thailand's securities regulator had recently announced indicated which would open up foreign crypto ETFs to retail buyers.
Featured image via Pixabay
