#BTCBreaksATH
Bitcoin has crossed $113,000 for the first time. So why did this significant rise happen?
There are several interconnected reasons for this.
There have been massive inflows from large financial institutions that started putting 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 confidence 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 measures. This reassured the market and increased demand.
There is also an emotional aspect where many people see Bitcoin as digital gold, meaning a way to preserve the value of their money amid inflation and economic turmoil.
But at the same time, we must keep in mind that Bitcoin is inherently very volatile. It could correct again and drop a bit 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 ready for volatility and not put all their money into a single asset. Overall, what has happened proves that Bitcoin has evolved from being just a digital currency and has become an actual part of the global financial system.
