Bitcoin surpasses $17K for first time since early December

Crypto’s benchmark cryptocurrency, Bitcoin, has pushed past $17,000 for the first time in 2023 after being range bound for several weeks between $16,380 and $16,975.

Bitcoin has now been on a positive trend since the start of January when it opened the year at $16,482. Bitcoin is up 3.72% over the last seven days and 2.33% in the previous 24 hours, according to CryptoSlate data.

Why is Bitcoin pumping?

With a lack of significant on-chain developments within the Bitcoin ecosystem, the rally appears unlinked to any news related to the network. Further, noteworthy developments within the crypto space at large to which Bitcoin could react have been scarce.

However, as the dust begins to settle on the FTX news cycle, the use case for Bitcoin in self-custody is stronger than ever. A global financial crisis is looming with continually steep inflation, no end in sight for the war in Ukraine, and growing tensions between China and the West. In addition, the concern over which asset class will act as the best store of value in 2023 may be strengthening investors’ resolve in Bitcoin.

While Bitcoin acted as a risk-on asset throughout the majority of 2022, eyes now move to whether Bitcoin will repeat its strong performance when the Ukraine war started as we move further into 2023.

The next Bitcoin halving event is roughly 18 months away, so historical metrics suggest the bull market is not yet around the corner. However, plenty of investors have fled crypto after the tumultuous events of 2022. The collapse of major exchanges, projects, hedge funds, and lending platforms shook out plenty of investors while removing bad actors from the space.

Forbes recently discussed potential Bitcoin price predictions for 2023 with Alistair Milne, founder of Altana Digital Currency Fund, suggesting it could reach as high as $300,000 by 2024. Others had more conservative estimates predicting prices between $30,000 and $50,000, such as the Professor of Finance at Sussex University, Carol Alexander.

Eric Wall, the CIO of Arcane Assets, also stated the bottom is in for Bitcoin, and it will now race toward a $30,000 price target in 2023.

Potential bear trap

The biggest elephant in the room, however, is the fate of Digital Currency Group and, therefore, Genesis and the Grayscale Trust. A recent CryptoSlate market report showcased the predicament facing DCG and the potential havoc it could wreak on the crypto industry should it be forced to liquidate assets to avoid…