#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 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 tightening. This reassured the market and increased demand.

Additionally, there is an emotional aspect; many people see Bitcoin as a form of digital gold, meaning a way to preserve the value of money amid 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 regarding regulations or the global economy.