#BTCBreaksATH Bitcoin has surpassed 113,000 US dollars for the first time. So why did this significant rise happen?
The issue has several interrelated reasons.
There have been massive inflows from large financial institutions that started putting their money into Bitcoin after investment funds like the 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 restrictions. This reassured the market and increased demand.
There is also an emotional aspect; many people see Bitcoin as a form of digital gold, a means to preserve the value of money amid inflation and economic disruptions.
But at the same time, we must remember 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 prepared for volatility and not put all their money into a single asset. Overall, what has happened proves that Bitcoin has transitioned from being just a digital currency to becoming an actual part of the global financial system.
