#BTCBreaksATH

Bitcoin has surpassed 113,000 US dollars for the first time. So why did this huge increase happen?

There are several interconnected reasons for this.

There have been massive inflows from large financial institutions that started putting their money into 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.

Also, US policies have become more flexible towards crypto, especially after the current administration announced its intention to support innovation and clear legislation instead of tightening regulations. 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 in light of 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 one must be ready for volatility and not put all their money in one asset. In general, what has happened proves that Bitcoin has evolved from being just a digital currency to being an actual part of the global financial system.