Bitcoin has surpassed 113,000 US dollars for the first time. So why did this huge increase happen?
The situation has several interconnected reasons.
There have been massive inflows from large financial institutions that started to invest 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 where many people see Bitcoin as a digital gold, meaning a means to preserve the value of money amid inflation and economic turbulence.
However, at the same time, we must keep in mind that Bitcoin is inherently very volatile. This means it could correct again and drop a bit due to profit-taking or any negative news regarding regulations or the global economy.
