The cryptocurrency market is witnessing a powerful confluence of bullish factors, catapulting Bitcoin (BTC) to new heights as institutional adoption accelerates from a slow trickle to a sudden flood. The digital asset recently surged past the $108,000 mark, peaking at over $108,250 before a slight retrace to $107,446. This rally is underpinned by significant developments in traditional finance and government policy. In a landmark move, Bill Pulte, the director of the U.S. Federal Housing Finance Agency, ordered mortgage giants Fannie Mae and Freddie Mac to prepare to count cryptocurrency as a valid asset for mortgage applications. This potential integration into the U.S. housing market represents a monumental step for digital asset legitimacy. Further fueling the risk-on sentiment, the Federal Reserve has advanced plans to overhaul bank capital requirements, a move that could significantly improve credit creation and benefit risk assets like BTC. The U.S. Dollar Index (DXY) reflected this sentiment, falling 0.56% to 97.14, providing a strong tailwind for Bitcoin.

Bitcoin's Institutional Momentum Fuels Rally Past $108,000

The influx of institutional capital is not just a policy headline; it's visible in the data. Spot Bitcoin ETFs have recorded 12 consecutive days of positive flows, with a notable net inflow of $547.7 million on a single day, according to data from Farside Investors. This brings the cumulative net inflow for these products to a staggering $48.12 billion, with total holdings now around 1.23 million BTC. Corporate treasuries are also doubling down. Japanese firm Metaplanet recently purchased an additional 1,234 BTC, boosting its total holdings to 12,345 BTC. This relentless accumulation from both ETFs and public companies provides a solid demand floor, absorbing sell pressure and propelling prices higher. According to FxPro analyst Alex Kuptsikevich, the total crypto market capitalization has swelled to $3.31 trillion, pushing against a critical volatility threshold between $3.40 and $3.55 trillion, a zone that has previously activated sellers. The market's Fear and Greed Index has climbed to 74, just shy of the "extreme greed" territory, indicating high but not yet euphoric sentiment.

Derivatives Market Shows Nuanced Picture

While spot markets paint a bullish picture, the derivatives market offers a more complex view for traders. Open interest in Bitcoin perpetual futures has seen a notable uptick across major exchanges, while on the CME, BTC futures open interest surged to a four-week high of 159,850 BTC. This could indicate fresh long positions entering the market, but it could also signal an increase in hedging activity against potential price drops. A key indicator, the basis—the spread between futures and spot prices—remains relatively flat below 10%, which somewhat weakens the aggressively bullish narrative and suggests the market is not overly leveraged. On the options front, data from Deribit shows that risk reversals have normalized, now displaying a slight bias for calls (bullish bets), indicating that fears of a sharp downturn have subsided. This mixed but leaning-positive derivatives landscape suggests a healthier, more sustainable rally compared to a leverage-fueled speculative frenzy.

Altcoin Spotlight: SEI's Fundamental Rally and BTC/BCH Technicals

Beyond Bitcoin, certain altcoins are showing exceptional strength based on fundamental catalysts. SEI has surged an impressive 50% in the past week in what analysts describe as a “clean, multi-factor rally.” The primary driver was the announcement that Wyoming has named SEI as a settlement layer for its state-backed stablecoin pilot (WYST), granting the chain rare institutional credibility. This was compounded by an airdrop snapshot, increased validator rewards, and a lack of significant token unlocks in the near future. On-chain data supports this organic growth, with Sei's Total Value Locked (TVL) crossing $540 million and its DEX volume hitting a record $60 million. For traders looking at specific pairs, the Binance-listed BTC/BCH chart presents a compelling technical setup. The 50-day simple moving average (SMA) is on a clear trajectory to cross above the 200-day SMA. A confirmation of this “golden cross” would signal a long-term bullish trend for Bitcoin Cash relative to Bitcoin, offering a potential pair trading opportunity.