Stablecoins too – and not as a sign of risk tolerance, but to mitigate the risks of fiat debasement, as 80eight macro strategist Shiven Moodley explains. From Moneyweb.
You can also listen to this podcast on iono.fm here.
Altvest became the first JSE-listed company to adopt bitcoin on its balance sheet and many other South African companies are quietly doing the same, says 80eight macro strategist Shiven Moodley.
Bitcoin reserve strategies are becoming more common now that companies like Altvest have broken the ice. Some have taken a more aggressive stance, others are more conservative.
What’s also apparent is how companies are using USD-pegged stablecoins such as Tether, alongside BTC, to insulate their balance sheets against inflation and potential rand weakness.
Growing acceptance
What’s remarkable is the growing acceptance of crypto, particularly stablecoins and bitcoin, as part of the broader financial system.
Virtually all SA banks are involved in developing digital asset custody solutions for their clients as a kind of soft launch into the crypto realm.
Moodley explains why BTC is holding firm above $100 000.
What’s changed is the entry of institutional buyers into the BTC universe via exchange-traded funds (ETFs) and other products.
Every dip in price is met with aggressive buying, and that has protected bitcoin from further weakness.
This in turn has fuelled sometimes wild speculation about the next up-leg in BTC’s price journey, though what could be at play here is that BTC has entered a new phase of lower volatility, both to the downside and the upside.
Other factors
Another factor at play is BTC ‘front running’ the US Federal Reserve’s expected lowering of interest rates in the coming months.
Lower rates account for the 11% USD weakness so far this year, with bitcoin showing signs of decoupling from other risk assets such as the Nasdaq, particularly when US President Donald Trump announced tariff wars against trading allies.
There’s also been a lot of development around making bitcoin easier to spend.
Ethereum was supposed to be the vehicle for that, but developers seem to be concentrating on bitcoin as the future money powerhouse.
This podcast offers a fascinating look into how companies are loading bitcoin and stablecoins onto their balance sheets – not as a sign of risk tolerance, but to mitigate the risks of fiat debasement.
For previous Moneyweb Crypto Pod episodes, click here.
