The cryptocurrency market is experiencing a powerful wave of institutional adoption, shifting from a slow trickle to a sudden surge. This trend, which began with corporate treasury strategies, is now expanding into foundational sectors of the U.S. economy. In a landmark move, Bill Pulte, the director of the Federal Housing Finance Agency (FHFA), has ordered government-sponsored enterprises Fannie Mae and Freddie Mac to begin preparations for including cryptocurrency holdings as a valid asset class when evaluating mortgage applications. This directive aims to integrate digital assets into the vast American housing market, a development that provides significant long-term bullish fuel for Bitcoin (BTC) and the broader crypto ecosystem. Further bolstering this positive sentiment, the Federal Reserve has advanced a plan to overhaul bank capital requirements, a move that could enhance liquidity and credit creation, typically benefiting risk-on assets like cryptocurrencies. These fundamental tailwinds have directly contributed to Bitcoin's recent rally, where it briefly surpassed the $108,000 mark before a slight consolidation.

Bitcoin Tests Key Resistance as Market Cap Nears Volatility Zone

As institutional support grows, market indicators reflect mounting bullish pressure. Bitcoin's price, after reaching a high of over $108,250, has settled around $107,446, showing remarkable strength. According to FxPro analyst Alex Kuptsikevich, the total cryptocurrency market capitalization has climbed by 1% to $3.31 trillion, pushing it to a critical threshold where increased volatility is expected. Kuptsikevich notes that the range between $3.40 trillion and $3.55 trillion has historically acted as a major turning point, often activating sellers. The market sentiment, as measured by the Fear & Greed Index, has risen to 74, just shy of the "Extreme Greed" territory, suggesting high investor confidence but also a potential for overheating. This optimism is backed by hard data, with spot BTC ETFs recording a net inflow of $548 million, marking twelve straight days of positive flows. The total assets under management in these ETFs have now surpassed $48.12 billion, with holdings of approximately 1.23 million BTC.

On-Chain Activity and Derivatives Show a Mixed Picture

While spot markets show clear buying pressure, the derivatives landscape presents a more nuanced view. Perpetual futures open interest has seen an uptick alongside Bitcoin's slight pullback from its recent peak, indicating that some traders may be establishing hedges against a potential price correction. Notably, open interest has surged in altcoins like Bitcoin Cash (BCH), PEPE, and Monero (XMR) over the past 24 hours. On the CME, a hub for institutional traders, Bitcoin futures open interest jumped to a four-week high of 159,850 BTC. However, the futures basis—the premium of futures contracts over the spot price—remains flat below 10%, which slightly tempers the overwhelmingly bullish narrative and suggests a degree of caution among professional investors. Corporate adoption continues unabated, with the Japanese firm Metaplanet purchasing an additional 1,234 BTC, bringing its total treasury holdings to 12,345 BTC and making it one of the largest corporate Bitcoin holders globally.

Altcoin Spotlight: SEI Leads the Pack

Beyond Bitcoin, certain altcoins are displaying exceptional strength. SEI has been a standout performer, surging over 50% in the past week in what analysts describe as a "clean, multi-factor rally" driven by organic spot buying. A key catalyst was Wyoming's selection of SEI as a settlement layer for its state-backed stablecoin pilot, providing the blockchain with rare institutional validation. This news, combined with an upcoming airdrop snapshot and increased validator rewards, has fueled significant interest. Data from DeFiLlama shows Sei's Total Value Locked (TVL) crossing $540 million, with decentralized exchange (DEX) volume hitting a record $60 million on Wednesday, confirming growing on-chain activity. In other altcoin news, Ether (ETH) has shown strength, climbing 1.29% to trade at $2,473.17. From a technical perspective, traders are watching the Binance-listed BTC/BCH trading pair, where the 50-day simple moving average is on track 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.