Latest news with #DeWit
Daily Maverick
19 hours ago
- Business
- Daily Maverick
Crypto Corner: Reading the crypto currents that caused the bitcoin wave
An institutional embrace of crypto has shifted the tide for bitcoin, but beware the choppy waters ahead. Bitcoin hit another all-time high last week, but it's not just digital magic making these numbers climb. There are real forces at play. Large institutions, investment firms and corporations are swirling in the bitcoin waters that have been chummed up with exchange-traded funds (ETFs) and direct purchases, creating what analysts call 'sustained upward pressure'. This institutional embrace has shifted the tide. Unlike previous rallies driven by retail enthusiasm, this swell lacks the signs of public Fomo – no soaring Google searches, no crypto apps shooting up the download charts. The maths is simple: when fewer bitcoins remain on exchanges (because institutions are holding them) and demand stays strong, prices rise. In a happy coincidence, US lawmakers have reviewed major cryptocurrency legislation. When the world's largest economy signals that it is taking crypto seriously, markets respond. Beyond the crypto-specific factors, bitcoin is benefiting from the US Federal Reserve's low interest rates, and easier monetary policies are pushing investors towards riskier assets in search of higher returns. Add a weakening US dollar into the mix and bitcoin becomes increasingly attractive as an alternative store of value. Despite the euphoria, seasoned analysts are flagging potential rough seas. One clear signal is 'whale activity' – large bitcoin holders have been depositing substantial amounts onto exchanges, often a sign that they intend to sell (dump). What stirred the waters was news of an ancient 'Satoshi-era' whale who had held 80,000 bitcoins since 2011 and recently transferred coins worth more than $4.6-billion. Such massive profit-taking can trigger significant corrections. Christo de Wit, country manager for South Africa at Luno, offers a crucial reality check. He points out that the Relative Strength Index shows overbought levels – typically a warning sign of incoming volatility. 'We encourage users to invest responsibly and only what they can afford to lose,' De Wit warns. This might seem like standard disclaimer language, but it's worth heeding. DM
Daily Maverick
6 days ago
- Business
- Daily Maverick
Bitcoin pips Amazon to become world's fifth-largest asset in record week
At a market cap of just above two trillion dollars, Bitcoin is probably never going to upset the global asset value pecking order, but this latest surge makes it more valuable than Amazon – with Apple in its sights. This week, Bitcoin delivered a series of electrifying performance highs, including hitting a new all-time high of R2,203,968 and leapfrogging Amazon to become the fifth-largest asset by valuation. The current rally is not merely speculative. It's supported by several fundamental shifts in the market. Increased institutional buying is a primary driver, with large investment firms and corporations actively accumulating Bitcoin through exchange-traded funds (ETFs) and direct purchases. As Christo de Wit, country manager for South Africa at Luno, puts it: 'The market dynamics we're seeing today are fundamentally different from previous cycles. Institutional participation has matured significantly, and we're seeing reduced selling pressure as fewer bitcoins remain on exchanges, indicating strong holder confidence.' This sustained demand has created considerable upward pressure. Kind, soft regulation Beyond institutional interest, positive regulatory developments are playing a crucial role. This past week, dubbed 'Crypto Week' in Washington, saw lawmakers reviewing major cryptocurrency legislation, adding significant regulatory momentum and boosting market confidence. 'Investors remain optimistic about the US government's increasingly supportive stance toward cryptocurrency, which has boosted confidence in Bitcoin's long-term prospects,' De Wit explains. 'This regulatory clarity, combined with continued institutional adoption, is creating a foundation for sustained growth.' Even President Donald Trump's endorsement of these efforts has reinforced sentiment. The broader economic environment also provides tailwinds. Low interest rates and easier monetary policies from the US Federal Reserve encourage investors to seek higher returns in riskier assets like Bitcoin, while a weakening US dollar makes Bitcoin more attractive as an alternative store of value. Technical market forces, such as a significant short squeeze, which forced traders betting against Bitcoin to buy back their positions, have also amplified its upward momentum. Navigating the volatility Remain calm. After reaching an all-time high, Bitcoin retreated, with its price dropping 5% in today's trading. This volatility is partly due to profit-taking by large holders (read: 'whales). Data from CryptoQuant indicates a sharp rise in whale activity on Binance, with large investors depositing around 1,800 BTC to secure gains or hedge positions, creating 'sell-side' pressure. Even a Satoshi-era whale that lay dormant for 14 years, transferred more than R80-billion worth of Bitcoin. The investor, who acquired BTC when it was below R550, has seen a more than 2.4 million percent increase in their holdings. Such massive movements to platforms like Galaxy Digital suggest an intent to offload a significant portion of their stash, which could impact on market dynamics. The market is also keenly awaiting tomorrow's US Consumer Price Index (CPI) data, which could influence the Federal Reserve's monetary policy direction and expectations for future rate cuts. Beware of gluttony Technical indicators like the Fear and Greed Index have moved firmly into 'Greed' territory, and the Relative Strength Index (RSI) shows overbought levels – typically warning signs of incoming volatility. 'While we're excited about Bitcoin's performance, we always encourage our users to invest responsibly and only what they can afford to lose,' cautions De Wit. 'The cryptocurrency market remains volatile, and past performance doesn't guarantee future results'. But maybe the most profound development this week is Bitcoin's climb to become the world's fifth-largest global asset by market capitalisation. Its market cap swelled to $2.4-trillion, allowing BTC to flip Amazon. This achievement is another step in Bitcoin's continued evolution from a speculative asset to a mainstream financial instrument. While it is a monumental leap, Bitcoin is still tiny when compared with established asset classes like gold, equities, real estate and treasury bonds. This shows immense potential for further growth, especially if retail buyers are gripped by Fomo (fear of missing out). While the path ahead may be volatile and marked by profit-taking and technical corrections, Bitcoin's new status as a top-five global asset is a reason to celebrate. DM
Edmonton Journal
07-07-2025
- Entertainment
- Edmonton Journal
'I've learned a lot': Edmonton-based rider commuting to Calgary for Stampede preparation
Article content Julia Duffill, 17, is in her fourth year as a Showrider. For her, the teamwork and friendships have been the biggest take-aways from her time on the team. Article content 'They're not just my teammates, they've become more family,' she said. 'I've gained really good friendships from this program, and it's been amazing for my horse.' Article content Though she's been riding a horse since she was six years old, she had never had a chance to be part of a team until joining the Showriders. Article content 'It's always you and your horse,' she said. 'Showriders is really good, because it gets you to work, you and your horse, in a team setting.' Article content Performing for large crowds at the Stampede has been a highlight for Duffill. Article content 'Performing in the Nutrien is probably my favourite,' she said. 'One year they had it packed — like, max capacity. They had to stop letting people in, and that was a really big thrill.' Article content Article content 'Jam-packed' days for Showriders Article content During the Stampede, the riders are typically in the barns by 8 a.m. to feed and exercise their horses and clean their stalls. Once the horses are tacked up and decorated with glitter, the group heads out for the day's performances. A typical day involves three or four shows, as well as a 'stand-and-pat' outside the Nutrien building, where crowds can meet the horses and riders, take photos and ask questions. The riders have special appearances on foot throughout the 10 days as well. Article content 'It's pretty jam-packed,' DeWit said. Once the day's performances are done, the riders return to the barns for their evening chores. Article content 'They're not back to their trailers for the evening until 9 p.m.,' DeWit said. Article content
Calgary Herald
07-07-2025
- Entertainment
- Calgary Herald
'We've levelled up': Stampede Showriders celebrate 40th anniversary
Article content Julia Duffill, 17, is in her fourth year as a Showrider. For her, the teamwork and friendships have been the biggest takeaways from her time on the team. Article content 'They're not just my teammates, they've become more family,' she said. 'I've gained really good friendships from this program, and it's been amazing for my horse.' Article content Though she's been riding a horse since she was six years old, she had never had a chance to be part of a team until joining the Showriders. Article content 'It's always you and your horse,' she said. 'Showriders is really good, because it gets you to work, you and your horse, in a team setting.' Article content Article content Performing for large crowds at the Stampede has been a highlight for Duffill. Article content 'Performing in the Nutrien is probably my favourite,' she said. 'One year they had it packed — like, max capacity. They had to stop letting people in, and that was a really big thrill.' Article content Article content 'Jam-packed' days for Showriders Article content During the Stampede, the riders are typically in the barns by 8 a.m. to feed and exercise their horses and clean their stalls. Once the horses are tacked up and decorated with glitter, the group heads out from the barns for the day's performances. A typical day involves three or four shows, as well as a 'stand-and-pat' outside the Nutrien building, where crowds can meet the horses and riders, take photos and ask questions. The riders have special appearances on foot throughout the 10 days as well. Article content 'It's pretty jam-packed,' DeWit said. Once the day's performances are done, the riders return to the barns for their evening barn chores. Article content 'They're not back to their trailers for the evening until 9 p.m.,' DeWit said. Article content
Daily Maverick
02-06-2025
- Business
- Daily Maverick
Bitcoin reaches fever pitch — but always know what you're buying, say experts
TikTok traders, crypto evangelists and Bitcoin havens paint a picture of quick wins and easy exits. On Daily Maverick's Decrypting Crypto webinar, experts reminded investors that volatility, risk and regulation are all part of the crypto package. At more than R1-million a coin, Bitcoin's latest bull run is once again flooding feeds with promises of overnight wealth. Amid the media noise, experts are stepping in, urging caution: don't buy into something you don't understand. That was the message at Daily Maverick's Decrypting Crypto webinar, hosted by senior journalist Lindsey Schutters, in conversation with Christo de Wit, country manager of Luno, and Diketso Mashigo, head of the Financial Sector Conduct Authority's (FSCA's) licensing department. 'There's obviously a lot of clamour in the market,' Schutters said. 'Bitcoin is at an all-time high, it's a lot of money and everyone's trying to get in.' Don't invest in what you don't understand 'It is very important that people really get to understand what it is that they're buying into, what they're investing in and understand what the risks are,' Mashigo said. He stressed that the regulator expected authorised providers to actively educate their clients, especially when it came to a volatile asset such as crypto. While that may sound obvious, the crypto space is designed to move fast, often faster than many retail investors can realistically follow. Goals before gains 'When it comes to any kind of investment, whether it's crypto or not, it's important to have understanding and a very clear idea what your financial goals are, both short term and long term,' De Wit said. Crypto is notorious for its wild swings. Bitcoin itself has gone from R300,000 to R1-million, with some stomach-churning dips in between. 'Crypto is a higher risk asset class, and there is a lot of volatility,' De Wit said. Having a fundamental understanding of this was crucial in informing oneself when investing in crypto. Fractional ownership, full exposure A common crypto myth is that one needs to own a full coin to get started; an idea De Wit was quick to dispel. 'I think it's important for new-time investors to understand that you don't have to purchase an entire Bitcoin. You can purchase a fraction of it,' he explained. 'Even though Luno or the centralised exchange custodies it and keeps it in safekeeping, you have immediate access to further trade it, to withdraw it, to convert it back to rands, to convert it to other currencies.' The trick is choosing a credible licensed provider. 'Very carefully select your centralised exchange,' De Wit said. 'You can verify that on the FSCA website as well, to make sure that you know this is a cryptocurrency exchange platform that is licensed.' If your slice of the coin gains value, so does your investment. 'Any growth or loss, depending on what the market does, is related to the percentage that you hold,' De Wit said. Users can convert crypto to rands, transfer between wallets and even send Bitcoin to friends, which are growing trends in parts of the country. 'The whole Garden Route is becoming a crypto haven,' Schutters said. 'A lot of [people] are using stablecoins because they're just easier to transact with.' What does it mean to 'own' crypto? Ownership in the crypto space doesn't always look like traditional finance, but it follows similar principles, Mashigo explained. 'If I purchase a financial product, my ownership in that asset is represented somehow,' he said. 'And in this space, you can look at tokens. That, proportionately, is what I'm holding in that particular asset.' But how do you know that ownership is real and respected? De Wit pointed out a crucial consumer safeguard: proof of reserve. An important aspect to look out for is whether an exchange showcases proof of reserve, which is an audited report that validates that all consumer crypto currencies are exactly where the platforms say they are, he said. It's one of the most transparent ways users can confirm their holdings exist and they're not being lent out or siphoned off without consent. The three golden rules Mashingo broke down FSCA's consumer guidance into three pillars for anyone considering a crypto investment: Understand the product. Know exactly what you're buying, how it works and if it addresses your needs. Know the risks. Volatility, market swings and speculation are part of crypto's nature. Be ready to stomach the sudden drops. Verify the platform. 'Understand the party or the platform or the venue or the provider that you're dealing with, whether they're licensed or not,' said Mashigo. 'That's simple. You come through us. You check on our website, pop us an email, and we can confirm.' Growing regulation Mashigo made it clear that the FSCA was here to make sure that people knew what they were getting themselves into. 'We make sure that … certain basic things are in place,' said Mashigo and specified that businesses had to be contactable, transparent and authorised to do what they claimed. With crypto asset providers (CASPs) now being brought under formal licensing and regulatory oversight in South Africa, the hope is that consumer protection will continue to improve. DM
