Bitcoin (BTC) broke R1.9 million this week, reversing the nearly 30% drawdown

Bitcoin (BTC) broke R1.9 million this week, reversing the nearly 30% drawdown that accompanied the initial chaos of US President Donald Trump's tariff wars

Bitcoin (BTC) price broke R1.9 million this week, as it continues to recover from the nearly 30% drawdown that accompanied the initial chaos of US President Donald Trump’s tariff wars against US trading partners.

It is now within a few percentage points of its all-time high above R2 million, which was breached in January this year.

Bitcoin price in ZAR

The USD price of bitcoin broke above $100 000 this week for the second time this year, coming within a whisker of the all-time high of $109 000 set in January this year.

ALSO READ: Bitcoin trades at nearly R2m thanks to Donald Trump

The bitcoin bulls were out in force this week, with MicroStrategy founder Michael Saylor – whose firm holds 555 450 BTC valued at about $57 billion – forecasting a rise to $150 000, while Rich Dad Poor Dad author Robert Kiyosaki is predicting $350 000 as a way stop to $1 million by 2035.

Respected crypto analyst PlanB is forecasting a potential for BTC to hit $400 000 before the year is out, based on a relative strength index (RSI) which, while overbought, has yet to stretch itself to levels achieved in previous bull markets.

PlanB sees room for the RSI to breach 80 in the coming months, which would take its price to a potential target of $400 000.

ALSO READ: Bitcoin crashes. Is it still worth it? Is Donald Trump to blame?

“Bitcoin is trading just below R2 million in South Africa, and a weaker rand could easily push it over that level,” says Faadil Moti, CEO of crypto company 80eight.

“At the same time, bitcoin in US dollars is testing a major resistance and looks overbought, so a short-term pause is possible. But overall, the momentum is strong – there’s a marginal squeeze in the market, and prices remain elevated as investor appetite for risk continues.

“We’re also watching the derivatives market closely, where more positions are building – often a sign of growing interest and confidence,” says Moti.

“Bitcoin is becoming more than just a trade; it’s turning into a reliable store of value. For South Africans, it offers a hedge against a weakening rand and long-term upside.”

It’s now becoming apparent to even sceptical investors that some BTC exposure is becoming necessary to provide some zest to portfolio performance, adds Moti.

ALSO READ: Rand dives thanks to Trump while Bitcoin shines thanks to Musk

The new ‘safe haven’ asset

Gianluca Sacco, chief operating officer at crypto exchange VALR, says the recent rally was ignited by diminishing fears of a tariff trade war between the US and China. That relief has led to a rebound in a broad set of assets, including bitcoin.

“More specifically in the crypto space, bitcoin is the safe haven asset with large institutional buyers providing support and stepping in when the price has looked attractive over the last month,” adds Sacco.

“Institutions such as Strategy [MicroStrategy] and Metaplanet have been active over the last month in buying more bitcoin for their balance sheets while the participation of exchange traded funds has also strengthened.

“All of this with a view that bitcoin is maturing into its status as digital gold.”

Kiyosaki has urged his followers to ditch fiat currencies in favour of BTC, gold and silver.

“Fake money leads to dishonest money, dishonest statistics, dishonest accounting, dishonest balance sheets, dishonest compensation, dishonest relations, dishonest leaders, and corruption in everyday life,” he wrote in a 10 May social media post.

This article was republished from Moneyweb. Read the original here.