‘Blue Sky' moment as Bitcoin surges to record high
Bitcoin has surged to an all-time high on optimism about upcoming legislation.
Image: IOL
Bitcoin surged to a new all-time high of $111,534 (R2,01 million) on Thursday as US debt concerns and legislative uncertainty around President Donald Trump's tax bill weighed on traditional equity markets.
According to AFP, the world's most popular cryptocurrency is riding on a wave of optimism over anticipated cryptocurrency legislation in the US, which could provide clarity for the sector.
Bitcoin's previous high was around $109,000 (R1.44 million), on March 11, 2005.
However, uncertainty over Trump's 'Liberation Day' tariffs weighed on financial markets through early April, until the US President announced a 90-day pause on reciprocal tariffs on April 9.
Bitcoin broke through the $100,000 barrier once again on May 8 and has displayed solid growth throughout the month.
"Now that January's high has been surpassed - and the 50 percent upside from April's lows has been achieved - bitcoin enters blue sky territory with tailwinds in the form of institutional momentum and a favorable US regulatory environment," Antoni Trenchev, co-founder of digital asset trading platform Nexo, told Reuters.
"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," Trenchev added.
Bitcoin's rally, which has also benefited other cryptocurrencies, has triggered substantial institutional interest, with Bitcoin Exchange-Traded Funds (ETFs) seeing more than $607 million (R10.9 billion) worth of inflows following the new price peak.
This institutional adoption shows growing confidence in Bitcoin as a legitimate asset class among professional investors, says Luno's country manager for South Africa, Christo de Wit.
"This decoupling from traditional equities is particularly noteworthy," De Wit said.
"For South African investors, this development underscores the growing importance of cryptocurrency as a potential portfolio diversification tool, particularly as global economic conditions continue to evolve."
Get your news on the go, click here to join the IOL News WhatsApp channel
IOL
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
12 hours ago
- IOL News
What the US Fed's interest rate decision means for South Africa's property sector
Further rate cuts this year would be beneficial for property developers and investors, as well as for stimulating domestic consumption, which could, in turn, support local economic growth. Image: Tracey Adams/Independent Media The United States Federal Reserve's decision to maintain interest rates may influence the South African Reserve Bank's (SARB) Monetary Policy Committee when it meets to announce its decision on the local repo rate at the end of next month. On Wednesday night, the US Federal Reserve kept interest rates steady but signalled possible cuts later this year. Fed chairperson, Jerome Powell, warned that rising tariffs could push inflation higher and delayed any easing - much to the dismay of President Trump, said Bianca Botes, Director at Citadel Global. She said Asian markets retreated as investors grew cautious, with stocks and currencies weakening amid uncertainty over US involvement in the Israel-Iran conflict. 'Oil prices slipped after President Trump's unclear stance on the Middle East conflict. US equity futures have edged lower, while trading in Treasuries has paused for the US Juneteenth holiday. The rand is on the back foot given the current cautious setting. It starts the day at R18.04/$, R20.68/€ and R24.19/£,' Botes said on Thursday morning. Early indicators from the SARB and various economists suggest that a rate cut may be considered at the upcoming meeting, aligning with the global trend toward a monetary easing cycle, says Dr Farai Nyika, an Academic Programme Leader at the School of Public Administration of the Management College of Southern Africa (Mancosa). He said that notably, other major economies such as Switzerland and Norway have recently cut interest rates, while the United Kingdom has opted to maintain its current rates. 'The European Central Bank also reduced its rates on June 5, 2025, reinforcing the broader trend of declining interest rates,' Nyika said. The academic said further rate cuts would be beneficial for property developers and investors, as well as for stimulating domestic consumption, which could, in turn, support local economic growth. However, he said this optimistic outlook remains uncertain. With the recent geopolitical tensions, including the outbreak of hostilities between Israel and Iran, he said this may exert inflationary pressures through increased imported fuel costs. 'This phenomenon of 'imported inflation' could compel the SARB to delay any anticipated rate cuts in July. Nonetheless, the local property market is in a stronger position than it was one or two years ago, largely due to previous rate cuts. As such, even a decision to maintain the current repo rate in July would likely be welcomed by the sector,' Nyika said. The fact that SA interest rates are higher than in the US is the result of many different factors, but in practical terms, it makes the country an emerging market investment destination, says Professor Waldo Krugell, an economist within the School of Economic Sciences at the North West University (NWU). He said it creates a demand for SA bonds, and by implication, for rands. 'To maintain the exchange rate, we don't want that differential to narrow too much. The implication is that if the Fed holds rates, the SARB is also more likely to hold rates,' Krugell said. He added that if the Fed does end up cutting rates later in the year and inflation stays low in SA, the country might see another cut or two and that would benefit the property sector. However, he said that there is a lot of uncertainty at the moment with real wars, trade wars and possibly a new inflation target in SA. Independent Media Property
IOL News
13 hours ago
- IOL News
What the US Fed's interest rate decision means for South Africa's property sector
Further rate cuts this year would be beneficial for property developers and investors, as well as for stimulating domestic consumption, which could, in turn, support local economic growth. Image: Tracey Adams/Independent Media The United States Federal Reserve's decision to maintain interest rates may influence the South African Reserve Bank's (SARB) Monetary Policy Committee when it meets to announce its decision on the local repo rate at the end of next month. On Wednesday night, the US Federal Reserve kept interest rates steady but signalled possible cuts later this year. Fed chairperson, Jerome Powell, warned that rising tariffs could push inflation higher and delayed any easing - much to the dismay of President Trump, said Bianca Botes, Director at Citadel Global. She said Asian markets retreated as investors grew cautious, with stocks and currencies weakening amid uncertainty over US involvement in the Israel-Iran conflict. 'Oil prices slipped after President Trump's unclear stance on the Middle East conflict. US equity futures have edged lower, while trading in Treasuries has paused for the US Juneteenth holiday. The rand is on the back foot given the current cautious setting. It starts the day at R18.04/$, R20.68/€ and R24.19/£,' Botes said on Thursday morning. Early indicators from the SARB and various economists suggest that a rate cut may be considered at the upcoming meeting, aligning with the global trend toward a monetary easing cycle, says Dr Farai Nyika, an Academic Programme Leader at the School of Public Administration of the Management College of Southern Africa (Mancosa). He said that notably, other major economies such as Switzerland and Norway have recently cut interest rates, while the United Kingdom has opted to maintain its current rates. 'The European Central Bank also reduced its rates on June 5, 2025, reinforcing the broader trend of declining interest rates,' Nyika said. The academic said further rate cuts would be beneficial for property developers and investors, as well as for stimulating domestic consumption, which could, in turn, support local economic growth. However, he said this optimistic outlook remains uncertain. With the recent geopolitical tensions, including the outbreak of hostilities between Israel and Iran, he said this may exert inflationary pressures through increased imported fuel costs. 'This phenomenon of 'imported inflation' could compel the SARB to delay any anticipated rate cuts in July. Nonetheless, the local property market is in a stronger position than it was one or two years ago, largely due to previous rate cuts. As such, even a decision to maintain the current repo rate in July would likely be welcomed by the sector,' Nyika said. The fact that SA interest rates are higher than in the US is the result of many different factors, but in practical terms, it makes the country an emerging market investment destination, says Professor Waldo Krugell, an economist within the School of Economic Sciences at the North West University (NWU). He said it creates a demand for SA bonds, and by implication, for rands. 'To maintain the exchange rate, we don't want that differential to narrow too much. The implication is that if the Fed holds rates, the SARB is also more likely to hold rates,' Krugell said. He added that if the Fed does end up cutting rates later in the year and inflation stays low in SA, the country might see another cut or two and that would benefit the property sector. However, he said that there is a lot of uncertainty at the moment with real wars, trade wars and possibly a new inflation target in SA. Independent Media Property
IOL News
13 hours ago
- IOL News
SA's iconic protea flower relocates as climate warms
Protea flower grower Nico Thuynsma poses for a photograph next to one of the Protea flower species growing at his fam in Cullinan, east of Pretoria on June 3, 2025. Thuynsma is experimenting with different seed varieties to find out which ones can thrive in drier, hotter conditions. His farm has become a testing ground for the future of the species, as climate zones shift northward. On his farm two hours north of Johannesburg, Nico Thuynsma gestured towards thousands of orange, yellow and pink proteas in flower and thriving 1,500 kilometres (930 miles) from their natural home at the southern tip of Africa. Image: Phill Magakoe / AFP On his farm two hours north of Johannesburg, Nico Thuynsma gestured towards thousands of orange, yellow and pink proteas in flower and thriving 1,500 kilometres (930 miles) from their natural home at the southern tip of Africa. "They're all different," the 55-year-old farmer said of the assorted blooms from the diverse Proteaceae family that has more than 350 species in South Africa, from firework-like "pincushion" varieties to delicate "blushing brides". He picked out a majestic pink and white crown, nearly the size of his head, that has taken four years to reach its impressive size. "The King Proteas are very slow to grow," Thuynsma said. The largest of the proteas, the King Protea, is South Africa's national flower. It has lent its name to the national cricket team and countless brands. It features on the currency and is the logo for South Africa's presidency this year of the G20 group of leading economies, which convenes a summit in November. It is also the country's largest flower export with more than 10 million stems sent abroad last year, worth close to 275 million rand ($15 million), according to the Cape Flora industry organisation. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Its status offers the King Protea some protection but almost half of South Africa's other protea species face extinction because of pressures on their native habitats in the mountains of the Cape, according to South Africa's National Biodiversity Institute (SANBI). These include habitat loss to agriculture, the proliferation of invasive alien species and "changes to natural fire cycles", SANBI said in a 2021 report. Icon Protea flower grower Nico Thuynsma poses for a photograph inside a greenhouse at his fam in Cullinan, east of Pretoria on June 3, 2025. Thuynsma is experimenting with different seed varieties to find out which ones can thrive in drier, hotter conditions. His farm has become a testing ground for the future of the species, as climate zones shift northward. On his farm two hours north of Johannesburg, Nico Thuynsma gestured towards thousands of orange, yellow and pink proteas in flower and thriving 1,500 kilometres (930 miles) from their natural home at the southern tip of Africa. Image: Phill Magakoe / AFP "People come to South Africa to see proteas," Nigel Barker, a professor in plant sciences at the University of Pretoria, told AFP. "It's the plant equivalent of the elephant or the lion." Most proteas are endemic or semi-endemic to the Cape Floral Kingdom biome of "fynbos" ("fine bush") that stretches across the southern tip of South Africa and is one of the world's richest flora biodiversity hotspots. But climate projections predict "hotter, drier conditions", Barker said. "We'll be looking at a completely different vegetation type in the future, semi-desert almost in some places." "Many species, because they're so range-restricted, will probably go extinct under those scenarios," he said. "The only solution we have is to cultivate them artificially... in greenhouses or farms where you control irrigation," Barker said. An example is Thuynsma's farm in the grasslands of the north, where he began planting proteas three decades ago. Here, winters are dry and frosty, and the summers rainy -- conditions very different to those in the far south where the proteas are at home. Gel for irrigation Through trial and error, Thuynsma has been able to cultivate close to 200 protea varieties, including some long forgotten and abandoned by farmers in their original habitats. In his latest experiment, he has planted 36 varieties with just two litres (four pints) of saturated gel for irrigation. "I hope to unlock the power of some of these varieties," Thuynsma said. "They come from the Western Cape out of very harsh conditions, so they do have it in them." "I learn from them, I learn with them. And, hopefully, in the future I can advise my nursery public -- and even estates -- how to plant this lovely fynbos without irrigation," he said. "I don't think I have a solution for climate change," he joked, crouched over a small seedling in freshly turned soil. "But I do have a solution: to plant proteas." A few metres (yards) away, in a warm nursery, thousands of protea sprouts awaited their turn in the soil. "I love them, I protect them, I collect them," Thuynsma said. "The protea is part of South Africa's DNA." AFP
