#ArbitrageTradingStrategy Bitcoin surpassed 113,000 US dollars for the first time. So why did this significant increase happen?
The issue has several interconnected reasons.
There have been huge inflows from major 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 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 restrictions. This reassured the market and increased demand.
Additionally, there is an emotional aspect; many people see Bitcoin as digital gold, a means to preserve the value of money amidst inflation and economic turmoil.
But at the same time, we must be aware that Bitcoin is inherently very volatile. 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 must be ready for volatility and not put all your money into one 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.
