#ArbitrageTradingStrategy
Bitcoin surpassed 113,000 US dollars for the first time. So why did this huge increase happen?
There are several interconnected reasons for this.
There have been massive inflows from large financial institutions that started investing their money in Bitcoin after investment funds like Crypto Blue Chip ETF emerged, which combines Bitcoin, Ethereum, and Solana. This created a new sense of trust among both large and small investors.
Also, US policies have become more flexible towards crypto, especially after the current administration announced its intention to support innovation and clear regulations instead of tightening restrictions. This reassured the market and increased interest.
There's also an emotional aspect; many people see Bitcoin as digital gold, a means to preserve the value of money amid inflation and economic turmoil.
But at the same time, we must be aware that Bitcoin is inherently very volatile. It can correct and drop again due to profit-taking or any negative news regarding regulations or the global economy.
If this trend continues, we might see Bitcoin breaking higher levels, but one must be prepared for volatility and not invest all their money in a single asset. Overall, what has happened proves that Bitcoin has evolved from being just a digital currency to becoming an actual part of the global financial system.
