Bitcoin Price Surges Amid Institutional Demand and Risk Appetite

Bitcoin's price has continued to rise as institutional demand and risk appetite drive the cryptocurrency's rally. The flagship asset jumped about 2.5% in early trading, bringing it within touching distance of the $81,000 mark before paring gains.

The recent surge is part of a sharp rally that began last week, with Bitcoin surging more than 20% in three days - its biggest three-day gain since 2023. The rally was fueled partly by a short squeeze, with over $4 billion in bearish crypto positions liquidated as prices rose.

Institutional demand has returned to the market, with U.S. spot Bitcoin exchange-traded funds (ETFs) attracting $1.92 billion in net inflows last week - their largest weekly haul since October 2023. This significant influx of capital has provided fresh support for the cryptocurrency's price.

However, questions remain over whether the breakout can last, with Fundstrat noting that a similar surge in January 2023 initially faded before Bitcoin found support around its 200-day moving average.