Bitcoin Price Breaks Above $80,000 Amid Institutional Demand

Bitcoin's price has broken above $80,000, marking its strongest weekly rise in over three years. The current rally is being driven by institutional demand, with spot Exchange Traded Funds (ETFs) recording positive inflows of $337.56 million on Monday.

However, traders should remain cautious as profit-taking and falling open interest could trigger a pullback. According to Santiment's Network Realized Profit/Loss (NPL) metric, Bitcoin holders are booking significant profits, with the NPL metric spiking sharply on Friday and Monday.

The derivatives metrics also show caution signs, with BTC's futures Open Interest (OI) falling steadily despite rising prices. This decline in OI suggests weakening participation behind the rally and raises the risk of a near-term correction.