The US dollar all-time high is also within reach. From Moneyweb.
Bitcoin smashed its previous rand high of R1.06 million to trade at R1.18 million within the last 24 hours on the back of strong institutional buying.
In USD, bitcoin broke above $63,000, coming within range of its previous all-time high above $69,000, which was touched briefly in November 2021.
The graph below tells the story.
The rand has depreciated 23% since November 2021, when bitcoin reached its previous all-time high, which explains bitcoin’s extraordinary run since December 2022, when it traded at R286,500.
That’s a gain of 314% in rands in a little over a year, proving once again the thrill of waiting out the inevitable and stomach-churning bear markets that follow parabolic runs like we have seen over the last year.
Institutions are piling into bitcoin, an asset previously denied to them due to their investment mandates that limited them to more regulated assets. All that has changed in the last six weeks as the US Securities and Exchange Commission (SEC) green-lighted the launch of spot exchange-traded funds (ETFs).
Bitcoin in ZAR
“This bullish momentum is largely attributed to positive sentiment surrounding the approval of Bitcoin spot ETFs by the SEC in the US, along with substantial inflows into these funds, which exceeded $577 million [R11.1 billion] by the close of business on February 27th,” says Christo de Wit, SA country manager for crypto exchange Luno.
MicroStrategy, the largest corporate holder of bitcoin, recently acquired an additional 3,000 tokens for $155 million (R3 billion), increasing its total holdings to 193,000 coins worth nearly $12 billion (R230 billion) at current prices.
What’s driving the rally?
CoinDesk reports that this week’s giant rally has coincided with huge inflows into US-traded spot ETFs, with the new funds adding more than 12,000 bitcoin on Tuesday after adding about 10,000 on Monday.
Another factor driving upward price momentum is the upcoming halving, which happens every four years when the rate of bitcoin issuance is halved. That constricts supply and has historically pushed bitcoin prices higher, both before and after the halving event.
Listen: Bitcoin halving adds to bullish sentiment
“While the upcoming bitcoin halving in April has historically coincided with positive price movements, past trends are not necessarily indicative of future performance,” adds De Wit.
Records in other currencies
FiveWest CEO Omer Iqbal notes that bitcoin (BTC) achieved all-time highs in several currencies – not just the rand.
“BTC has achieved all-time high prices against a diverse array of fiat currencies, some of which are the Australian dollar, Chinese yuan, South African rand, Norwegian krone, and Turkish lira,” says Iqbal. “This trend highlights a decreasing market value for these fiat currencies, attributed to escalating inflation rates which erode purchasing power over time.”
The question many are asking is how long it will take before BTC reaches the R2 million mark. That may have seemed a far-fetched proposition just a few months ago, but even mainstream banks see it rising to $100,000 or higher over the next year.
