The current rally in the bitcoin market is the focus of this edition of Business Day Spotlight.
Host Mudiwa Gavaza is joined by Christo de Wit, country manager for SA at cryptocurrency exchange Luno.
De Wit explains the recent bitcoin market rally and what it means for investors, especially during a time of volatility in equity and fixed-income markets.
Bitcoin set a record high of $111,534, more than R2m, on May 22.
This latest peak occurs against a backdrop of concern about potential US debt downgrades and legislative uncertainty around President Trump’s proposed tax bill.
De Wit says these factors have weighed on traditional equity markets. The divergence between crypto and stock performance suggests that digital assets are increasingly viewed as alternative stores of value during periods of traditional market uncertainty.
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At the time of publishing, one bitcoin cost R1,922,722.27.
The crypto executive also talks about the state of regulation in making crypto investments more mainstream. In the US, the introduction of crypto backed exchange traded funds, for example, has helped to increase the amount of institutional investment in the market.
However, in SA, Luno is calling for updated, clear and pragmatic regulations for digital assets such as bitcoin to help drive investment and economic growth.
Topics of discussion include: the recent bitcoin market rally and what it means for investors; the growth of cryptocurrency trading in SA; an update of how SA regulators view cryptocurrencies; and an outlook for the sector.
Business Day Spotlight is a MultimediaLIVE Production.
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