#ArbitrageTradingStrategy

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

There are several interconnected reasons behind this.

There have been huge inflows from major financial institutions starting 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 confidence among both large and small investors.

Also, American 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 has reassured the market and increased demand.

There is also an emotional aspect; many people see Bitcoin as digital gold, meaning it's 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. 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 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 to becoming an actual part of the global financial system.