Latest news with #Luno
Daily Maverick
2 days 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
7 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
Borneo Post
15-07-2025
- Business
- Borneo Post
Bitcoin surpasses RM510,000 on Luno, as institutional demand continuously grows
The strong demand from investment firms and companies for Bitcoin exposure, be it direct purchases or ETFs, has created a recent uptick in the price. — AFP photo PETALING JAYA (July 15, 2025) : Bitcoin, the first and largest cryptocurrency by market capitalisation, has hit over half a million ringgit on Luno, as institutional demand continuously grows. The strong demand from investment firms and companies for Bitcoin exposure, be it direct purchases or ETFs, has created a recent uptick in the price. This is coupled by the US Federal Reserve's more dovish tone. This environment has supported greater investor risk appetite, benefifiting alternative assets like Bitcoin. In parallel, the rally triggered a short squeeze of over US$200 million, as traders who had bet against the asset were forced to buy back their positions, further accelerating the price momentum. Luno's country manager for Malaysia, Scarlett Chai, said, 'The crypto market has evolved so much in the past couple of years, largely led by Bitcoin. 'Today, despite the scepticism of the asset class, Bitcoin is the fififth largest asset by market cap after Apple – one of the world's most recognisable brands'. Bitcoin's bullish momentum has also led to a rally in other coins, known as altcoins, including Stellar (XLM), Alogrand (ALGO), and Hedera (HBAR), which have seen over a 50 per cent price increase in a week. These are among the altcoins Luno has proposed to the Securities Commission Malaysia that were aligned with the regulator's requirements. Of the three coins above, ALGO and HBAR were launched this year, part of Luno's effort in expanding the list of tradable digital assets in the country. Chai added, 'We've not seen a demand like this from institutions. Investors are optimistic about the US government's supportive stance toward crypto, which makes them confifident about Bitcoin's future'. Chai also cautioned investors of a possible rise in investment scams taking advantage of Bitcoin's reignited popularity. 'Steer clear of any investment schemes that seem too good to be true, especially if they're social media advertisements promising good returns. 'Regulated crypto exchanges will never engage third parties to facilitate the investment or trade on your behalf', she concluded.
New Straits Times
14-07-2025
- Business
- New Straits Times
Bitcoin breaches RM500,000 on Luno platform as demand rises
KUALA LUMPUR: Bitcoin, the world's largest cryptocurrency by market capitalisation, has hit over half a million ringgit on Luno, as institutional demand continuously grows. According to Luno, the strong demand from investment firms and companies for Bitcoin exposure, be it direct purchases or ETFs, has created a recent uptick in the price. Luno said this is coupled by the US Federal Reserve's more dovish tone. "This environment has supported greater investor risk appetite, benefiting alternative assets like Bitcoin. "In parallel, the rally triggered a short squeeze of over US$200 million, as traders who had bet against the asset were forced to buy back their positions, further accelerating the price momentum," it said in a statement. Luno country manager for Malaysia Scarlett Chai said the crypto market has evolved so much in the past couple of years, largely led by Bitcoin. "Today, despite the scepticism of the asset class, Bitcoin is the fifth largest asset by market cap after Apple – one of the world's most recognisable brands," said Chai. Bitcoin's bullish momentum has also led to a rally in other coins, known as altcoins, including Stellar (XLM), Alogrand (ALGO), and Hedera (HBAR), which have seen over a 50 per cent price increase in a week. These are among the altcoins Luno has proposed to the Securities Commission that were aligned with the regulator's requirements. Of the three coins above, ALGO and HBAR were launched this year, part of Luno's effort in expanding the list of tradable digital assets in the country. "We have not seen a demand like this from institutions. Investors are optimistic about the US government's supportive stance toward crypto, which makes them confident about Bitcoin's future," Chai noted. Chai cautioned investors of a possible rise in investment scams taking advantage of Bitcoin's reignited popularity. "Steer clear of any investment schemes that seem too good to be true, especially if they are social media advertisements promising good returns. "Regulated crypto exchanges will never engage third parties to facilitate the investment or trade on your behalf", she added.
IOL News
14-07-2025
- Business
- IOL News
South Africa risks missing out on millions in tax due to a lack of cryptocurrency regulation
Bitcoin has significantly outperformed Luno's assumptions. Image: AFP Half-a-billion rand. That's the minimum in extra tax the South African Revenue Service (Sars) could collect if local regulators made a single regulatory change and designated cryptocurrencies as an onshore asset. If digital assets, such as Bitcoin, were formally classified as an onshore asset, it would allow local asset managers more ease in creating exchange-traded funds (ETFs) tracking its price, opening access to investments in the digital currency to both retail and institutional investors. Against the backdrop of South Africa's sluggish economic growth, mounting debt and urgent social challenges, the increasing relevance of digital assets becomes both an investment opportunity and a potential source of tax revenue. South African founded Luno, which operates in more than 40 countries, has estimated through a conservative calculation that R540 million in tax revenue could be generated over five years. To arrive at the R540m figure, Luno assumed a slow adoption rate, and as little as 1% of institutional funds invested in a digital asset product such as a Bitcoin exchange traded fund (ETF). They applied conservative annualised returns and the relevant tax rates to reach the estimate. Given that Bitcoin has significantly outperformed Luno's assumptions, the actual tax revenue could be much higher. As the government is frequently seeking more sources of tax revenue, quick regulatory action on this front appears an easy win. ETFs are traded on stock exchanges and mirror the price of underlying assets such as currencies, commodities and metals, including gold, silver and platinum. Bitcoin fits naturally into this structure. 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 ✕ But, because cryptocurrencies lack a formal designation as either onshore or offshore assets, asset managers remain reluctant to allocate capital to them or offer products such as ETFs that track Bitcoin. Much of financial institutions' 45% allocation limit for offshore investments is already absorbed by foreign stocks and other currencies. A simple onshore designation for digital assets could unlock vast new potential for both the asset industry and the fiscus. An onshore designation is also widely considered to be technically correct and best practice internationally. Bitcoin ETFs are neither obscure nor especially high-risk instruments. The basic principle remains: don't put all your eggs in one basket. Bitcoin ETFs are just another way to diversify portfolios and distribute risk more effectively. And over the past decade, Bitcoin has outperformed stocks and bonds on an absolute basis. According to StatMuse between July 10, 2015 and July 10, 2025, Bitcoin returned 41,261.3% and the S&P 500, a bellwether of the US stock market, returned 205.1%. This means R1 000 invested in Bitcoin in the early July 2015 would be worth around R413 613 a decade later, while R1 000 in the S&P 500 would return about R3 051. Bitcoin often behaves differently to equities and bonds, offering investors diversification and a way to earn returns on their money when their other investments are weaker. The cryptocurrency recently reached an all-time high of over R2 010 800, reflecting a more than 1 000% increase in just five years. Without regulatory clarity, local institutional investors are unlikely to capitalise on cryptocurrency returns, depriving the fiscus of the tax revenue that would otherwise be generated. Internationally, sentiment has already shifted. BlackRock, the world's largest asset manager, launched its own Bitcoin ETF in 2024 when US regulations permitted such. The Bitcoin ETF surpassed the value of the Bitcoin gold ETF, its previously largest and a long-time store of value In November 2024 and then became the fastest-growing ETF in US history, amassing more than $70 billion (R1.2 trillion) in assets under management by early June 2025. It grew five times faster than the fastest growing ETF, that held the previous record, tracking the gold price, owned by US bank State Street. In the UK, a pension fund made headlines in late 2024 by strategically allocating 3% of its portfolio to Bitcoin, signalling a fundamental shift in how mainstream finance views the digital asset class. South African regulations and financial regulators need to keep up with a changing cryptocurrency landscape. Recently, the Pretoria High Court found exchange control regulations from 1961 were not fit for purpose regarding cryptocurrencies and that with cryptocurrencies having been in existence for 15 years, it was time regulators caught up and accommodated them. Both a designation of onshore for cryptocurrencies and clearer exchange control regulations around cryptocurrencies are essential. Regulators cannot wish digital assets away or become so draconian, as happened in Nigeria, that trading in cryptocurrencies moved underground to unregulated peer to peer networks, away from any accountability. It's not just investors who stand to gain from clearer regulation. With transparent and fair rules, digital assets could become a robust new source of tax revenue, something South Africa desperately needs. At present, tax from digital asset gains remains relatively insignificant, because government policy hasn't kept up. The only thing that is keeping a cryptocurrency boost for the South African economy and fiscus is political will. Marius Reitz General Manager Luno: Africa and Europe Image: Supplied Marius Reitz is the General Manager Luno: Africa and Europe *** The views expressed here do not necessarily represent those of Independent Media or IOL. BUSINESS REPORT
