$BTC

Bitcoin has surpassed $113,000 for the first time. So why did this significant rise happen?

The situation has several interconnected reasons.

There have been massive inflows from large financial institutions that have started to invest their money in Bitcoin after investment funds like Crypto Blue Chip ETF emerged, which combines Bitcoin, Ethereum, and Solana. This has created a new sense of trust among both large and small investors.

Additionally, U.S. policies have become more flexible towards crypto, especially after the current administration announced its intention to support innovation and clear regulations instead of tightening. This reassured the market and increased demand.

There is also an emotional component; many people see Bitcoin as a form of digital gold, a way to preserve the value of money amid inflation and economic turmoil.

However, at the same time, we must be aware that Bitcoin is inherently very volatile. This means it could correct again and drop a bit due to profit-taking or any negative news related to regulations or the global economy.

If this trend continues, we might see Bitcoin breaking higher levels, but you need to be prepared for volatility and not put all your money into one asset. In general, what has happened proves that Bitcoin has moved beyond being just a digital currency and has become an actual part of the global financial system.