Bitcoin (BTC) has experienced a slight pullback after a powerful surge that saw its price briefly touch above $108,250 on Wednesday, but the underlying bullish sentiment remains firmly intact, buoyed by a wave of significant institutional adoption news and favorable macroeconomic signals. While the price hovered around $107,446 late Wednesday, a minor 0.37% dip, the broader market narrative suggests this is merely a consolidation phase before the next potential leg up. The key drivers are becoming increasingly clear: the slow but sudden integration of digital assets into the bedrock of the traditional financial system.

Institutional Floodgates Open for Bitcoin and Crypto

The most profound development comes from the heart of the U.S. housing market. Bill Pulte, the director of the Federal Housing Finance Agency (FHFA), issued a directive for mortgage giants Fannie Mae and Freddie Mac to begin preparing their systems to recognize cryptocurrency holdings as a valid asset for mortgage applications. This move, aimed at aligning with a vision to establish the U.S. as a global crypto hub, represents a monumental step in legitimizing digital assets. The potential for crypto to become entrenched in the world's largest housing market could unlock unprecedented capital flows. This sentiment is echoed by the consistent demand for spot Bitcoin ETFs, which, according to data from Farside Investors, have now recorded 12 consecutive days of net inflows, with the latest daily total reaching a substantial $548 million. This brings the cumulative net inflows to over $48 billion, with total BTC holdings in these products now exceeding 1.23 million BTC.

Further cementing the corporate adoption trend, Japanese firm Metaplanet continued its aggressive treasury strategy, purchasing another 1,234 BTC. This brings its total holdings to 12,345 BTC, making it one of the largest corporate holders globally. Beyond Bitcoin, the institutional appetite is expanding. Nasdaq-listed Bit Digital announced a strategic pivot to become a pure-play Ether (ETH) staking and treasury company, signaling confidence in the Ethereum ecosystem's long-term value. This diversification of institutional interest beyond Bitcoin is a healthy sign for the entire digital asset class.

SEI Token Soars on Institutional Adoption and Strong On-Chain Metrics

While Bitcoin captures headlines, the SEI token has quietly staged a spectacular rally, surging over 50% in the past week. Analysts describe this as a “clean, multi-factor rally” driven by fundamental catalysts rather than speculative leverage. A primary driver was the announcement that Wyoming has named SEI as a settlement layer for its state-backed stablecoin pilot (WYST), granting the layer-1 blockchain rare and powerful institutional credibility. This was compounded by a series of positive events, including an airdrop snapshot, an increase in validator staking rewards to 9% APY, and a lack of significant token unlocks in the near future, which alleviates selling pressure. On-chain data corroborates the bullish narrative: CEX inflows topped $3 million, while perpetual open interest saw a modest 9% increase with flat funding rates, indicating the rally is led by organic spot buying. According to DeFiLlama, Sei's Total Value Locked (TVL) has surpassed $540 million, with DEX volume hitting a record $60 million on Wednesday, pointing to burgeoning DeFi activity on the network.

Derivatives Market Signals Caution Amidst Bullish Fundamentals

Despite the overwhelmingly positive fundamental news, a look at the derivatives market suggests some traders are proceeding with caution. As BTC retreated from its highs, perpetual futures open interest on major exchanges ticked up, which may indicate hedging activity against a potential price drop. While open interest on CME Bitcoin futures reached a four-week high of nearly 160,000 BTC, the basis, or the premium of futures over the spot price, remains flat below 10%. This tempers the bullish positioning narrative, as a high and rising basis typically signals strong conviction from bulls. From a technical standpoint, one interesting development is on the Binance-listed BTC/BCH pair, where the 50-day simple moving average is on a trajectory to cross above the 200-day SMA. A confirmation of this “golden cross” would signal a long-term bullish indicator for the pair. For now, the market is digesting its recent gains, with FxPro analyst Alex Kuptsikevich noting that the total crypto market cap is nearing a critical resistance zone of $3.40–$3.55 trillion, a level that has previously triggered sell-offs.