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Anthony Pompliano Says Bitcoin is the New S&P 500

Okoya David
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Anthony Pompliano Says Bitcoin is the New S&P 500

Professional Capital Management CEO Anthony Pompliano argues that Bitcoin is becoming the default investment for young investors.

Over the past 16 years, Bitcoin has grown from its origins as a libertarian escape from the traditional financial system to a $2 trillion asset that, some believe, is poised to swallow the very traditional financial system it was designed to disrupt. Among those with this view is Professional Capital Management CEO Anthony Pompliano.

The New S&P 500?

Bitcoin is the new S&P 500, according to Anthony Pompliano. The prominent crypto market pundit said this on Fox Business’ Varney & Co. show on Monday, January 6.

On the show, Pompliano told veteran business journalist Stuart Varney that Bitcoin is increasingly taking the S&P 500’s role as the benchmark for younger investors seeking to know if they are doing better or worse than the market.

Simply put, Pompliano argues that Bitcoin is becoming the default investment for younger investors who feel they cannot outperform it, just as the S&P 500 has been for traditional finance investors.

The pundit argued that Bitcoin’s role as the new benchmark comes as it trades 24/7, 365 days a year, and as it is, in his estimate, the most sensitive to global liquidity.

At the same time, the market veteran stressed that with gold outperforming the S&P 500 in 2024, investors were beginning to question if businesses were truly growing or if most of the gains were coming from currency debasement.

This view comes as gold typically soars due to currency debasement or market uncertainty. In 2024, gold recorded 28.7% year-to-date (YTD), marginally edging out the S&P 500, which saw 26.6% gains.

A view that the S&P 500’s gains are largely from currency debasement could further play in Bitcoin’s favor as its limited supply has often led analysts to tout it as a good hedge against currency devaluation.

MicroStrategy, Trump’s Bitcoin Reserve

Beyond discussing the thesis of Bitcoin as the new S&P 500, Pompliano also addressed the issue of investors using MicroStrategy as a Bitcoin proxy and President-elect Donald Trump’s strategic reserves plans.

Addressing the use of MicroStrategy stock as a proxy to gain Bitcoin exposure, Pompliano stressed that a proper understanding of Bitcoin as an asset first was necessary for any prospective investor.

He argued that it was best for interested investors to first learn about Bitcoin through its white paper, buy and learn how to self-custody it before they start exploring various alternative routes to gain exposure. 

Also, when asked if a potential failure of Trump to build his promised strategic Bitcoin reserve would negatively impact the asset, Pompliano argued that Bitcoin was bound to succeed regardless of what the president does. He conceded, however, that such an announcement could negatively impact the market in the short term.

XRP and Dogecoin Funding Rates Point to More Upside in Market Recovery

Okoya David
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XRP and Dogecoin Funding Rates Point to More Upside in Market Recovery

XRP and Dogecoin futures funding rates indicate that the altcoins might sustain the ongoing recovery push.

The crypto market appears to have regained its momentum with the turn of the new year. Among the top gainers have been XRP and Dogecoin (DOGE), with nearly 20% and 26% gains, respectively, over the past seven days alone.

Despite this strong momentum, futures market data suggests things could just be warming up.

Funding Rates Lagging Behind 

XRP and Dogecoin perpetual market funding rates are lagging behind their recent price momentum. This is according to data from Glassnode shared on Monday, January 6.

Glassnode highlighted that despite the recent price momentum, funding rates for market leaders like XRP and DOGE have failed to turn significantly positive and instead remain neutral.

Chart showing funding rates of top 5 crypto assets
Chart showing funding rates of top 5 crypto assets. Source: Glassnode

Funding rates refer to the periodic payment made between traders to keep the price of a perpetual contract close to the spot market price. This periodic payment can often be used to gauge sentiment and leverage in the markets.

Positive funding rates signal significantly bullish market sentiment as it means the perpetual contract price is higher than the spot market price, and long traders are willing to pay short traders to hold their position. The same applies in the reverse.

Neutral funding rates, however, suggest that this fee exchanged between traders is close to zero, reflecting a balanced or cautious market environment. For XRP and DOGE, Glassnode data reveals that funding rates remain at 0.01% and 0.011%, respectively, despite their recent price rallies.

The neutral funding rates suggest that the recent rally is not driven by excessive leverage which could make it more sustainable.

At the same time, it could also mean that traders are buying shorts to bet against the rally, which could lead to a short squeeze under extreme conditions, all of which Glassnode considers bullish for XRP and DOGE.

Meanwhile, XRP and DOGE are not the only assets currently experiencing this phenomenon. Glassnode data shows funding rates for Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) are also neutral at 0.009%, 0.01%, and 0.006%, respectively, despite price gains in the past week.

How High Can XRP and Dogecoin (DOGE) Go?

Several analysts have offered their views on the immediate targets for XRP and DOGE amid the recent rally.

XRP

Amid XRP’s recent rally, prominent crypto analyst Ali Martinez has disclosed that the asset’s supertrend indicator has presented a buy signal on the 12-hour candle chart. The supertrend indicator is used to identify market trends and potential entry and exit points. It works by factoring the asset’s volatility and closing price within a particular period.

As highlighted by Martinez, the last time this indicator offered a buy signal was in November 2024, heralding a 470% surge in XRP’s price from $0.5 to $2.9. Replicating this price movement could set a $13.85 price target for the asset from its current price of about $2.43.

Meanwhile, veteran commodities trader Peter Brandt has tipped XRP’s market cap to hit $500 billion in the next few weeks. This could equate to a $8.7 XRP price with the current circulating supply of about 57.4 billion coins.

Dogecoin (DOGE)

Amid the current DOGE rally, prominent crypto analyst “Hov” has asserted that the meme coin could be headed towards $0.42 and eventually $0.64, citing an Elliot Wave analysis. At the time of writing, DOGE is exchanging hands for about $0.39.

Chart showing analysis of DOGEUSD daily candle chart
Chart showing analysis of DOGEUSD daily candle chart. Source: Hov

Still, Ali Martinez has warned of a potential price correction, citing a TD Sequential sell signal on DOGE’s daily candle chart.

US Prosecutor Says Victims of the Terra LUNA Collapse Could Run into Millions

Elendu Benedict
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US Prosecutor Says Victims of the Terra LUNA Collapse Could Run into Millions

A recent court filing by US prosecutors claims the impact of Do Kwon’s Terra LUNA collapse may have extended to millions of investors.

Terra founder Do Kwon’s trial has not kicked off properly, and the US prosecutors are already releasing big statements. One of which is the latest assertion from Daniel Gitner, US Attorney, that the 2022 Terra collapse affected millions of users.

In a filing with a New York District Court on January 6, US prosecutors estimated the number of well-meaning investors exposed to the Terra fallout two years ago. Per the disclosure, the number of entities affected by the collapse exceeded hundreds of thousands and could run into millions.

Weighty Legal Proceedings on the Cards

Terraform Labs’ co-founder, Do Kwon, will be embroiled in a lengthy legal case following the latest disclosure. Kwon was allegedly involved in the capitulation of the project’s algorithmic stablecoin, TerraUSD.

The stablecoin depegged in 2022, sparking the notorious crash of the network’s native token, LUNA. As a result, the implosion wiped out over $40 billion from the cryptocurrency market and catalyzed a series of bankruptcy filings from major digital asset firms considerably exposed to the ecosystem.

Meanwhile, with the case still new, the prosecutors stated that converging victims of the fallout for a fair trial was unrealistic due to the large number. However, the government proposed creating a website to update affected entities on the legal process.

Furthermore, the prosecuting council will allow victims exposed to the $40 billion wipeout to participate in the legal process. Interested parties can come forward and testify against Do Kwon and Terraform with evidence.

Do Kwon Risks Lengthy Jail Time

The Terra Lab co-founder began his trial on January 2, when he pleaded not guilty to seven charges, including two commodities and securities fraud counts, respectively. The trial came after the US successfully extradited Kwon from Montenegro after months of tussle with South Korea.

If convicted, Do Kwon could face up to 50 years of imprisonment. That would be more than FTX’s Sam Bankman-Fried, who got 25 years for his involvement in the exchange’s implosion the same year.

Meanwhile, the South Korean national will face trial in the same jurisdiction that tried SBF, Binance’s Changpeng Zhao, and former Celsius CEO Alex Mashinsky. He will appear in court on Wednesday to continue the legal proceedings.

Gemini Agrees to $5M Settlement in CFTC Bitcoin Futures Suit

Albert Brown
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Gemini Agrees to $5M Settlement in CFTC Bitcoin Futures Suit

Gemini, the cryptocurrency exchange founded by Tyler and Cameron Winklevoss, has agreed to pay $5 million to settle a lawsuit filed by the Commodity Futures Trading Commission (CFTC).

The lawsuit alleged that Gemini provided misleading information in its attempt to secure approval for the first U.S.-regulated Bitcoin futures contract. As reported by Bloomberg, the agreement, finalized on January 6, avoids a trial initially scheduled for later this month. Notably, Gemini settled without admitting or denying liability.

Allegations Against Gemini

The lawsuit, initiated in 2022, accused Gemini of making false statements to regulators concerning measures to prevent manipulation of Bitcoin price data. This data was intended to serve as a benchmark for derivative products.

Notably, U.S. District Judge Alvin Hellerstein ruled in November that a jury would need to determine whether statements made by Gemini executives were indeed misleading. 

According to Bloomberg, the case reflects broader regulatory actions under President Joe Biden’s administration, which has sought to tighten oversight of crypto. The settlement approval comes amid a backdrop of shifting political and regulatory landscapes, with former President Donald Trump set to begin his second term later this month. 

Continued Legal Challenges

Meanwhile, this settlement is not the only legal issue confronting Gemini. The exchange is also battling a lawsuit by the U.S. Securities and Exchange Commission (SEC) over allegations of raising billions of dollars in crypto assets through its Gemini Earn program. 

As part of a separate settlement with New York regulators earlier this year, Gemini agreed to repay over $1 billion to affected customers.

Between 2017 and 2018, Gemini handed over subpoenaed laptops from two ex-executives as part of a related criminal investigation. Notably, the investigation subsequently closed without any charges filed.

Controversy Over Asset Listings

Simultaneously, two weeks ago, Gemini faced criticism from the Cardano community over its decision to list the Solana-based meme coin Chill Guy while continuing to exclude Cardano (ADA).

This decision has sparked frustration among ADA supporters, who noted that Cardano remains a top-ten cryptocurrency by market capitalization with significant trading volumes. Cardano founder Charles Hoskinson also expressed discontent through social media, amplifying community sentiments about Gemini’s listing priorities.

Binance BNB Coin Targets $841 With Breakout Rally

Albert Brown
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Binance BNB Coin Targets $841 With Breakout Rally

Will Binance (BNB) Coin price start a breakout rally to surpass $800 and set a new all-time high as Bitcoin crosses $100K?

Altcoins are following a bullish trajectory, with the total crypto market cap (excluding Bitcoin and Ethereum) rising by 1.11% yesterday, reaching a valuation of $1.04 trillion. Among the top altcoins, Binance Coin surged 2.28% over the past 24 hours.

Notably, BNB has increased by 4.32% over the past seven days, cementing its position as the fifth largest cryptocurrency with a market cap of $105.24 billion.

With the short-term recovery poised for a breakout rally, bulls expect a significant upside for Binance Coin. Will this rally propel the price beyond the $800 mark?

BNB Coin Price Analysis

On the 4-hour chart, BNB’s price action reveals a strong resistance level slightly above the $730 mark. The supply zone extends between $728 and $731.

Currently, Binance Coin’s recovery, with a 2.90% surge last night, is challenging this resistance level. This crucial zone coincides with the 61.80% Fibonacci retracement level.

Binance Coin Price Chart
Binance Coin Price Chart

The bullish recovery in BNB highlights a potential inverted head and shoulders pattern, with the supply zone acting as the neckline. This pattern typically signals substantial upside potential.

As the recovery continues, the critical EMA lines on the 4-hour chart have turned bullish. Additionally, the RSI is nearing the overbought zone, signaling continued bullish momentum. Thus, technical indicators are providing a buy signal.

Binance Coin Price Targets

Currently, BNB is forming a morning star pattern at the 61.80% Fibonacci level as a potential retest. If the post-retest reversal gains momentum, the immediate resistance levels for Binance Coin are at $757 and $795.

If the bulls manage a breakout, the upside potential for Binance Coin extends to $840, which is very close to the Fibonacci price projection of $841 at the 1.272 level.

On the flip side, key support for Binance Coin remains at the 100 EMA line at $705.

Vechain Analysis: Can VET Reach $0.10 With $0.056 Breakout?

Albert Brown
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Vechain Analysis: Can VET Reach $0.10 With $0.056 Breakout?

The bullish potential in Vechain highlights a strong upside, with a breakout rally potentially reclaiming the $0.10 milestone.

With Bitcoin crossing into the $100,000 territory, altcoins are following through with the bullish trend.  Vechain shows significant potential among the top performers after its 3.43% jump last night.

Buyers are targeting the next psychological milestone as the underlying dynamics turn bullish. Will the growing anticipation of a rally drive VET prices to $0.10?

Vechain Price Analysis

In the daily chart, the VET price action displays a pullback phase in motion. The pullback comes after the massive surge of November and early December 2024. This led to a more than 323% price surge, from $0.01890 to a peak of $0.080.

Vechain Price Chart
Vechain Price Chart

However, bullish exhaustion has pushed Vechain prices below the $0.050 psychological level. The VET price trend found crucial support near the $0.040 psychological level.

After stabilizing at this support level, buyers regained confidence, setting the stage for a potential recovery. Following a double-bottom reversal, VET has risen to its current price of $0.05201.

By reclaiming the 50-day and 20-day EMA lines, VET is now challenging the resistance at $0.05425. The positive alignment of the critical EMA lines strengthens the bullish outlook.

Furthermore, the recovery run last week, which saw a gain of more than 20%, has pushed the RSI above the halfway mark. As a result, the technical indicators maintain a positive outlook for Vechain.

VET Price Targets

The trend-based Fibonacci levels from the bull run show that the neckline is very close to the 23.60% Fibonacci retracement level at $0.05660. A bullish close above the immediate resistance levels could trigger the next rally.

A breakout above the 23.60% Fibonacci retracement level could pave the way to the 100% level at $0.10329. On the flip side, key support levels remain at $0.040, with the 200-day EMA at $0.03563.

Pro-XRP Lawyer Says SEC Will File Appeal Brief, but Don’t Be Dismayed

Elendu Benedict
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Pro-XRP Lawyer Says SEC Will File Appeal Brief, but Don’t Be Dismayed

With the January 15 deadline for the US SEC to file an appeal brief fast approaching, a notable legal expert thinks the regulator will pursue the course.

The US Securities and Exchange Commission (SEC) surprised the crypto community when it appealed Judge Analisa Torres’ August 7 final ruling in its case with Ripple. The securities watchdog filed an appeal notice on October 2 and a Form C providing the details 15 days later.

Following the Form C, the SEC had about 91 days to file its main brief on the reopened case. According to reports, the agency requested in late October 2024 that the court extend the deadline to January 15. The judge granted this request.

Meanwhile, as the deadline draws closer, the XRP community has inquired if the SEC will file the brief. Their queries hinge on the necessity of the brief, given the impending change in the SEC hierarchy five days after the deadline.

Legal Expert Says SEC Will File Appeal

In a Monday tweet, pro-XRP attorney Jeremy Hogan suggested that the top regulator will file the brief to the Second Circuit Appeals Court. 

Notably, the SEC’s Form C shows that it is arguing the ruling on XRP’s sales on exchanges, Ripple’s distribution of XRP to employees, and the sales of XRP by co-founder Chris Larsen and CEO Brad Garlingouse on exchanges.

Hogan expects the SEC to file the brief promptly, as the same Gensler-led administration remains in power. However, he called for calm among the community, insisting the brief would not determine the case’s outcome.

Attorney Gives Timeline for Settlement

The pro-XRP legal expert stated that the incoming SEC administration can still settle the case with Ripple or dismiss it upon resumption. Furthermore, he predicted that the regulator would most likely go for a settlement.

It bears mentioning that the August 7 partial victory for both parties ruled on a $125 million settlement between Ripple and the SEC. As a result, the regulator may conclude on the fee if it decides to settle the case.

Meanwhile, market commentators expect the likely settlement to boost XRP’s price as the final ruling did. The Crypto Basic reported that an analyst speculated a 66% rise in the asset’s price when both parties settled.

As Bitcoin Hits $102K, Will Bulls Drive the Rally to $106K?

Albert Brown
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As Bitcoin Hits $102K, Will Bulls Drive the Rally to $106K?

As Bitcoin reaches the $102K price target, bulls face a critical decision. Will the BTC price continue its upward momentum toward $106,888?

Bitcoin has finally surpassed the psychological $100,000 mark, riding a seven-day bullish streak. Peaking at $102K, will the BTC price continue to $106,888, or is this a trap for bulls at a crucial resistance point?

Bitcoin Price Analysis

With seven consecutive bullish candles on the daily chart, BTC has reclaimed the six-figure price milestone. Last night’s 4.02% surge formed a massive bullish engulfing candle, breaking through the key threshold.

BITSTAMP:BTCUSD Chart Image by Trojan69420

The BTC price trend reached a 24-hour high of $102,760, hitting the price target as predicted in our previous article. However, the substantial overhead supply has led to a minor pullback, with the current Bitcoin price sitting at $101,637.

This pullback is testing the broken resistance trendline of a rising channel pattern. The overnight recovery resulted in a bullish breakout of the rising channel, but the short-term pullback raises concerns about a potential bearish reversal. This could be a bullish trap for traders betting on the breakout rally.

The overnight surge has pushed the 4-hour RSI line into the overbought zone. Additionally, the bullish gap between the 50 and 100 EMA lines has widened after the recent crossover.

Bitcoin ETF Inflows Reach $987M

Amid the overnight recovery, institutional support for Bitcoin has resulted in massive inflows. On January 6, the U.S. spot Bitcoin ETFs registered a daily net inflow of $987.06 million. 

Bitcoin ETFs
Bitcoin ETFs

Additionally, most of the inflows came from Fidelity and BlackRock, acquiring $370.24 million and $209.08 million, respectively. The total net assets under the institutions have risen to $116.67 billion, representing 5.77% of the Bitcoin market cap.

Bitcoin Bulls Dominate the Derivatives Market

As the bullish trend breaks to the $100,000 mark, the Bitcoin open interest has risen significantly by 2.20% to reach $65.24 billion. The long-to-short ratio over the past 24 hours remains bullish at 1.0227%. 

Bitcoin Derivatives
Bitcoin Derivatives

The OI-weighted funding rate has risen to 0.0044%. Over the past 24 hours, total liquidations amounted to $51.80 million, primarily from the bearish side. Short liquidations accounted for $40.06 million, while bulls experienced a liquidation wave of $11.74 million. This data suggests that the derivatives market remains highly bullish, signaling a continuation of the uptrend.

BTC Price Targets

Technical indicators reflect the overnight surge in buying pressure. However, the short-term pullback casts a shadow over the uptrend’s potential.

From an optimistic perspective, a post-retest reversal could see Bitcoin targeting $106,888. However, a close below $101,306 (the immediate support) could lead to a retest of the $100,000 mark.

Michael Saylor Advocates Burning Bitcoin Keys After Death as a Pro-rata Contribution

Albert Brown
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Michael Saylor Advocates Burning Bitcoin Keys After Death as a Pro-rata Contribution

Michael Saylor suggests burning Bitcoin keys after death as a “pro-rata contribution” to strengthen decentralization and benefit all holders.

Saylor, the chairman of MicroStrategy, recently unveiled a unique perspective on the future of his Bitcoin holdings. In a conversation with Fox Business’ Charles Payne, Saylor suggested that Bitcoin holders destroy their keys after their demise. 

He noted this action would result in a proportional contribution to all remaining Bitcoin holders, potentially strengthening the protocol’s decentralized nature. He described Bitcoin as a protocol for prosperity and advocated for actions that enhance its long-term value. 

“When you die, take the Bitcoin with you,” he said.

Taking The Torch From Satoshi

During the interview, Michael Saylor expressed aspirations to be remembered for advancing Bitcoin’s global adoption. He highlighted his efforts in carrying forward Satoshi Nakamoto’s vision, emphasizing his role in promoting Bitcoin’s commercialization among corporations and governments.

Advocacy for Bitcoin Adoption 

Saylor has also consistently emphasized Bitcoin’s potential for mainstream adoption, targeting influential figures and corporations. In December, he directed his advocacy towards Amazon founder Jeff Bezos.

Saylor proposed that Bezos consider redirecting a reported $600 million allocated for a wedding celebration toward Bitcoin investment. 

Although Bezos denied the claims about the celebration, Saylor maintained that such investments could significantly impact Bitcoin adoption at a corporate level. Bezos’ potential influence, Saylor implied, could pave the way for broader corporate interest in cryptocurrency.

MicroStrategy’s Aggressive Acquisition

In line with his advocacy, Saylor’s company, MicroStrategy, has continued its aggressive Bitcoin acquisition strategy. As of January 6, the firm revealed the purchase of 1,070 BTC at an average price of $94,004 per coin, amounting to a $101 million investment. This latest acquisition increased the company’s holdings to 447,470 BTC, valued at $44.55 billion.

Notably, MicroStrategy has amassed these holdings over four years at an average purchase price of $62,503 per Bitcoin, resulting in an unrealized profit of $16.59 billion.

Since November 2024, the company has intensified its purchasing efforts, acquiring Bitcoin on a weekly basis. The strategy gained momentum following Donald Trump’s pro-Bitcoin presidential victory, leading to a series of consecutive acquisitions.

Among these, MicroStrategy made its largest single purchase on November 25, buying 55,500 BTC for $5.4 billion.

Ripple CEO Says XRP Can’t Stay Underwater Forever, Predicts Continued Rise

Abdulkarim Abdulwahab
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Ripple CEO Says XRP Can’t Stay Underwater Forever, Predicts Continued Rise

Ripple CEO Brad Garlinghouse shared his thoughts on the future of XRP during a recent appearance on the Citizens JMP podcast.

Garlinghouse expressed confidence in XRP’s growth, likening its rise to a basketball being held underwater.

“If you hold a basketball underwater long enough, eventually it shoots up,” he said, hinting at XRP’s current trajectory after years of suppression from external factors.

XRP Can’t Stay Underwater Forever

Notably, XRP traded largely between $0.40 and $0.50 for years before a turnaround occurred in November 2024.

During this time, even amid broader crypto bull runs, XRP’s price remained low, and proponents often attributed the situation to theoretical suppression by external factors. Most directed their accusations at Ripple’s ongoing regulatory challenges with the SEC.

However, soon after SEC Chairman Gary Gensler announced his resignation in November, XRP’s bull run gained historic momentum. Specifically, the XRP price surged to a seven-year high weeks later, reaching $2.90 before settling around $2.40, where it now maintains a stable price range.

Ripple’s Garlinghouse attributed the sudden price surge to XRP being securing freedom from the regulatory weight that had hindered its uptrend. “Now, we’re seeing a change. It feels vindicating, honestly,” he said.

XRP to Continue Rising, Urges Focus on Long-Term Perspective

Garlinghouse argued that its rise wouldn’t be surprising if XRP had received a level playing field. Accordingly, he predicts that XRP will continue to soar.

He reminded listeners that XRP was once the second-most valuable cryptocurrency after Bitcoin before facing “factors that were exogenous—perhaps unnatural or unethical in some ways.”

While acknowledging XRP’s recent surge, Garlinghouse emphasized the importance of maintaining a long-term perspective.

He highlighted that Ripple focuses on building the infrastructure for an “internet of value,” where XRP plays a pivotal role. Garlinghouse urged employees to focus on Ripple’s mission and disregard market fluctuations.

Garlinghouse’s Crypto Market Outlook

Garlinghouse also shared his optimistic outlook for the broader cryptocurrency market. He had previously predicted the market could reach $5 trillion by the end of 2024. While the total market cap is currently at $3.5 trillion, he stressed that it remains on a strong upward trajectory.

His belief in the inflation-resistant nature of cryptocurrencies fuels his optimism. He foresees continued growth in the space as institutional demand and U.S.-centric blockchain initiatives gain traction.

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