Bitcoin Pulls Back Amid Profit-Taking, Institutional Demand Remains Strong
Bitcoin (BTC) has been experiencing a pullback for three consecutive days as profit-taking weighs in. Despite this, strong institutional demand and sustained accumulation by larger holders could support the cryptocurrency.
The price of BTC surged 6.7% at the start of this week on Monday, reaching its highest level since January's end, before profit-taking emerged. The Network Realized Profit/Loss (NPL) metric spiked sharply on Monday, indicating that holders are selling their bags at a significant profit.
So far this week, institutional demand has remained strong. Spot Bitcoin ETFs recorded an inflow of $346.98 million on Wednesday, marking the fifth consecutive day of inflows since last week. This highlights robust investor demand and could extend the ongoing rally.