Bitcoin Retreats From $108K as Institutional Adoption Fuels Bullish Momentum

Bitcoin surged to a high of $108,077.59 in the past 24 hours before retreating, with the BTCUSDT pair settling around $107,425.61 as of the latest data, reflecting a slight pullback but maintaining an overall bullish trend. This price action occurred against a backdrop of accelerating institutional adoption, highlighted by Bill Pulte, director of the Federal Housing Finance Agency, who announced on social media platform X that Fannie Mae and Freddie Mac will incorporate cryptocurrency holdings into mortgage criteria, potentially integrating Bitcoin into the core of the U.S. housing market. Simultaneously, the Federal Reserve advanced plans to overhaul bank capital requirements, which could enhance credit creation and bolster risk assets. These developments, coupled with Metaplanet's recent purchase of 1,234 BTC for $133 million, underscore growing corporate treasury strategies and signal sustained demand, reinforcing the bull case despite short-term volatility.

Market Sentiment and Key Indicators Point to Upside Potential

According to Alex Kuptsikevich, an analyst at FxPro, the total cryptocurrency market capitalization reached $3.31 trillion, approaching a critical volatility threshold between $3.40 and $3.55 trillion that has historically triggered seller activity. The Fear and Greed Index climbed to 74, just one point below the extreme greed zone, indicating strong investor confidence. Spot Bitcoin ETFs recorded a net inflow of $547.7 million, marking 12 consecutive days of positive flows and pushing cumulative net inflows to $48.12 billion with total BTC holdings near 1.23 million BTC, as reported by Farside Investors. Ethereum also saw robust inflows, with spot ETH ETFs adding $60.4 million, bringing cumulative flows to $4.14 billion. Technical analysis reveals support levels around $106,500 based on the 24-hour low, with resistance near $108,000; a decisive break above could target $110,000, while downside risks include profit-taking from overbought conditions.

Derivatives and Trading Opportunities Highlight Cross-Market Dynamics

Derivatives markets showed mixed signals, with CME Bitcoin futures open interest rising to a four-week high of 159,850 BTC, while the basis remained flat below 10%, weakening the bullish narrative. Perpetual futures open interest increased notably for Bitcoin Cash (BCH), PEPE, and Monero (XMR), suggesting hedging against potential pullbacks. On Deribit, risk reversals normalized with a slight call bias for BTC options, whereas ETH options retained a put premium. The BTC-BCH pair is on the cusp of a golden cross, as the 50-day simple moving average approaches the 200-day SMA, a long-term bullish indicator that could present trading opportunities. Altcoins like SEI surged 50% in a week, driven by Wyoming's adoption as a settlement layer for its state-backed dollar pilot and high staking yields, with DEX volume hitting $60 million. However, tokens facing imminent unlocks, such as Optimism (OP) on June 30 worth $16.82 million and Sui (SUI) on July 1 worth $117.91 million, may exert selling pressure, requiring careful position management.

Broader market correlations are pivotal, with the dollar index (DXY) falling 0.56% to 97.14 and Nasdaq futures rising, reflecting continued risk-on sentiment. Upcoming macro events, including U.S. May durable goods orders and Q1 GDP data on June 26, followed by core PCE inflation and consumer sentiment on June 27, could influence Fed rate cut expectations. Traders should monitor these releases for volatility; weaker data might accelerate rate cut bets, benefiting crypto, while strong figures could temper gains. For active strategies, consider accumulating BTC near support with stop-losses below $106,000, while ETH's resilience near $2,473 offers entry points ahead of staking growth from Bit Digital's strategic shift. Overall, the confluence of institutional inflows, favorable macro tailwinds, and technical setups suggests Bitcoin bulls are far from done, with potential for new highs if key resistances are breached.