Bitcoin is being accepted as a mainstream currency.
Bitcoin’s rally to a fresh all-time high of more than $120 000 (or over R2 million at current exchange rates) has triggered a wave of profit-taking, sending the crypto-currency down 2.35% in early Tuesday trade.
Despite the dip, analysts and major investment houses remain confident the bullish momentum is not over.
The recent slide is being attributed to investors locking in gains after Bitcoin surged more than 25% so far this year. The consensus is that this is a cooling-off phase in an ongoing bull cycle.
“Pullbacks are common in crypto rallies, and this latest cooling can most likely be attributed to investors taking profit,” says Christo de Wit, country manager for South Africa at Luno. “All eyes will now be on the key support level Bitcoin reaches, which could signal where the market will turn to next.”
deVere CEO Nigel Green says: “Investments of this magnitude don’t move in straight lines. They surge, cool, consolidate, then break out again. That’s the phase we’re entering.”
Bitcoin’s price trajectory continues to capture attention from institutional analysts. The deVere Group forecasts that Bitcoin could hit $150 000 during this cycle, with a shorter-term jump to $125 000 expected soon.
“All the indicators point to $125 000 in sight this week,” says Green. “It’s being powered by deep political backing, new regulatory clarity and sustained institutional inflows. This is a powerful combination we haven’t seen at this scale before,” he says.
Green adds that the “trajectory to $150 000 is intact, but investors should expect a sharp move to $140 000, then a healthy sell-off before we power higher”.
US-based Ark Invest is even more bullish in the long-term. The investment firm sees Bitcoin potentially reaching $1.5 million (R26.7 million) per coin by 2030 if current momentum continues. Even in less optimistic conditions, Ark expects a price of around $300 000 (R5.3 million), based on an exchange rate of R17.83 to the dollar.
Luno describes the latest surge as “another milestone in the crypto-currency’s remarkable bull run”. De Wit adds that the rally was driven by multiple factors, including increased institutional buying, positive regulatory developments and strong market fundamentals.
There are also mounting signs of political and institutional support. Elon Musk’s recently launched America Party has added weight to Bitcoin’s standing as an alternative currency. During his Independence Day speech, Musk described Bitcoin as a foundation for economic resilience.
In the US, Bitcoin could soon form part of sovereign reserves as government takes a more favourable stance on digital currencies. According to De Wit, institutions and corporations are still accumulating Bitcoin, through both exchange-traded funds and direct purchases, creating sustained upward price pressure.
Green highlights a “flurry” of developments in the US, including president Donald Trump’s positioning as the “crypto president” and the tabling of several key crypto-related Bills in the House of Representatives. Among these, the Genius Act is considered a major step forward in US regulation of digital currencies.
Formally titled the Guiding and Establishing National Innovation for US Stablecoins Act, the Bill would establish a federal framework for regulating payment stablecoins, covering the issue, custody and consumer protection, while ensuring financial stability.
“Bitcoin’s recent surge to a new all-time high is a testament to the growing adoption and recognition of crypto-currency as a legitimate asset class,” says Larry Cooke, head of legal at Binance Africa. “As the market continues to evolve, it’s clear that digital assets are becoming increasingly integrated into mainstream finance.”
Market dynamics are also fundamentally different to previous crypto cycles. “Institutional participation has matured significantly, and we’re seeing reduced selling pressure as fewer Bitcoins remain on exchanges, indicating strong holder confidence,” says De Wit.
“This is not crypto on the fringe anymore,” Green says. “This is front and centre of US financial policy. Trump is championing it, lawmakers are acting on it, and Wall Street is all-in.”
