Bitcoin hits $118 000 in fresh high.
Bitcoin surged to a new all-time high on Friday morning, trading at over $118 000 per unit (or more than R2 million), as geopolitical tensions and shifting investor sentiment saw capital flowing into alternative assets.
Christo de Wit, Luno country manager, says the price has been bolstered by a combination of there being more buyers than sellers at the moment, a weaker dollar and government support as the US government embraces the unit as a legitimate currency.
US-based investment firm Ark Invest has forecast that the crypto-currency could reach $1.5 million (R26.7 million) per coin by 2030 if the bullish momentum continues. Even during a period when Bitcoin is less attractive, the asset manager sees it hitting around $300 000 – or R5.3 million − at Friday’s exchange rate of R17.83 to the dollar.
However, Peter Schiff, chief economist and global strategist at Europac, says it’s time to sell Bitcoin and buy silver, which was up 0.46% on Friday morning.
“Even if Bitcoin keeps rising for a while, silver should rise much more. And while Bitcoin can easily crash, silver’s downside seems very limited,” he said on X.
Crypto analysis platform Blockzeit says few investors are currently selling, as expectations for further price increases remain high due to growing demand.
Bitcoin’s surge comes as markets enter a risk-on environment, following US president Donald Trump’s latest tariff announcement, which has reignited geopolitical tensions, resulting in weaker confidence in the dollar.
Old Mutual chief economist Johann Els says investors are seeking riskier assets, while TreasuryONE currency strategist Andre Cilliers notes that gold is also gaining ground as a safe-haven asset. “The rising geopolitical heat has reignited gold’s allure,” he says.
According to deVere Group, an independent financial advisory and asset management firm, Bitcoin’s rally is being driven by mounting political momentum, the potential inclusion of the crypto-currency in US sovereign reserves, and corporate interest in the asset as a hedge against currency depreciation.
“The shift is clear and aggressive,” says Nigel Green, deVere CEO. “This isn’t hype. This is capital following political will.” He points out that, if Bitcoin becomes part of the US’s strategic reserves, its perceived legitimacy will rise. Traditional economics indicates that limited supply results in rising prices.
Political and corporate support
Elon Musk’s newly-launched America Party has given Bitcoin additional validity as an alternative currency. During his Independence Day speech when he launched his new political party this week, Musk referred to the crypto-currency as the basis for economic resilience.
“Musk is giving Bitcoin further ideological weight and policy relevance,” says Green. “That moves markets. His reach is unmatched, and he’s aligning it with a monetary vision that resonates with a generation raised on decentralised tech.”
Bitcoin’s latest rally is also supported by a more accommodating regulatory environment. “The era of blanket resistance appears to be over,” says Green. “Regulatory friction held back institutional involvement for years. Now that it’s easing, we’re seeing fresh inflows from asset managers who were waiting for exactly this moment.”
De Wit adds: “Investors are still optimistic about the US government’s supportive stance toward crypto-currency, which makes them more confident about Bitcoin’s future.”
In South Africa, the Financial Services Conduct Authority said in December that it had granted licences to 248 companies to act as crypto asset service providers.
In a report released on Thursday, crypto investment firm Keyrock said institutional investors increasingly view Bitcoin as a sovereign, limited supply and tamper-proof store of value. The shift comes amid ongoing lower fiat currency valuations and heightened political risk, leading to Bitcoin emerging as a hedge against declining currency values, said Keyrock.
deVere notes that 17 publicly-listed US companies have disclosed Bitcoin holdings in recent filings. In February, Altvest Capital became the first African company to adopt a Bitcoin treasury strategy.
“The new all-time highs are being powered by political and regulatory will that are unlocking new channels for capital, and by the growing acceptance that Bitcoin now plays a strategic role in global finance,” says Green. “Boards are acting to preserve value through a cycle of rising debt and monetary uncertainty.”
