Bitcoin hits all-time high, surpassing R2 million per BTC
Bitcoin (BTC), the world’s largest cryptocurrency, surged to a new all-time high on this week, surpassing the R2-million mark. This significant rise, with Bitcoin touching highs above $111,000 and last trading at $111,388, indicates a notable improvement in risk sentiment following last month’s tariff-induced sell-off. Locally, Bitcoin briefly surpassed the R2-million mark for only the second time in its history, last trading at R1.98-million/coin.
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The cryptocurrency’s impressive ascent is attributed to a confluence of factors. These include easing trade tensions between the US and China and Moody’s downgrade of US sovereign debt, which has prompted investors to seek alternative investment avenues beyond the dollar.
Antoni Trenchev, co-founder of digital asset trading platform Nexo, commented on Bitcoin’s trajectory: “Now that January’s high has been surpassed — and the 50% upside from April’s lows has been achieved — bitcoin enters blue-sky territory with tailwinds in the form of institutional momentum and a favourable US regulatory environment.”
Bitcoin often mirrors the performance of tech stocks and other assets that thrive on strong investor sentiment. This correlation is evident as the tech-heavy Nasdaq has seen a 30% rise from its early April low, coinciding with Bitcoin’s surge. This period has also been marked by continued weakness in the US dollar, further bolstering Bitcoin’s exchange rate against the greenback.
Increased involvement from traditional financial institutions is frequently cited by crypto market participants as a catalyst for Bitcoin’s gains. Recent developments supporting this include JPMorgan CEO Jamie Dimon, a long-time crypto sceptic, stating that the bank will now allow clients to buy Bitcoin. Earlier this month, crypto exchange Coinbase was also added to the S&P 500 index, further legitimizing the digital asset space.
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Trenchev remains optimistic about Bitcoin’s future, noting, “We’re still in year four of the bitcoin price cycle — the year after the bitcoin halving when miner rewards are slashed in half — which historically means its best days are still ahead of it and, while macro uncertainty and the threat of further volatility remains, a target of $150,000 in 2025 is still very much on the cards.”
Interestingly, Ether (ETH), the second-largest cryptocurrency, did not parallel Bitcoin’s robust rally, showing a slight decline of 0.5% to $2,513.
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