Bitcoin’s positive 2023 is continuing after it topped $30,000 for the first time since June last year.
The flagship cryptocurrency broke the barrier on Tuesday before slipping back to around $29,950 at the time of writing on Wednesday (7am UK).
Its price has increased more than 70% since the start of the year, when it stood below $17,000. It appears unaffected by the market turmoil exacerbated by the collapse of Silicon Valley Bank a month ago.
“It’s likely we will see Bitcoin at $40k by the end of the month – and then the brakes will truly be off,” said Stefan Rust, CEO of inflation data aggregator Truflation and former CEO of Bitcoin.com.
“Could Bitcoin reach the $1 million prediction made by Balaji Srinivasan? Anything is possible in a world where investors can no longer trust the banks that are supposed to keep their money safe.
“Bitcoin has truly demonstrated its power as a store of value and a hedge against uncertainty in recent weeks. As the traditional financial ecosystem was shaken by the collapse of several banks, we have seen Bitcoin racing past several key resistance levels.”
Rust said that today’s US inflation figures will likely push BTC even higher. “It’s likely to show inflationary pressures receding.”
Ethereum, meanwhile, has risen 60% since the start of the year and is closing on $2,000 once more.
However, today’s planned Shanghai upgrade to its blockchain – which will enable some people to withdraw funds frozen as part of the network’s migration to proof-of-stake validation technology – could add selling pressure.
“While some are concerned about potential sell-off pressures as 1.1 million ETH becomes available for withdrawal, only a fool would sell Ether in this market,” said Rust.
The overall crypto market cap is now at 1.22 trillion.
Tim Frost, CEO of digital wealth platform Yield App, said the market reflects a “growing optimism among investors towards digital assets”.
He added: “Just as spring brings a renewed sense of energy, the recent surge in Bitcoin’s price is like a breath of fresh air after a long, cold crypto winter.
“This renewed optimism could be attributed to an anticipated shift in the US Federal Reserve’s monetary policy, which is expected to create a more stable, and hopefully predictable environment.”