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

Bitcoin BTC experienced a slight pullback from its intraday high of $108,250 on Wednesday, settling at $107,446.08 by 4 p.m. ET, a 0.37% decline from the peak, according to market data. This retreat reflects profit-taking after a strong rally, but underlying institutional inflows and macro tailwinds suggest bullish momentum remains intact. The cryptocurrency's 24-hour trading volume on Binance BTCUSDT pair reached 4.43784000 BTC, with prices fluctuating between a low of $106,414.03 and a high of $107,894.30, indicating key support near $106,400 and resistance at $108,250. Broader market dynamics show the total crypto market capitalization rose 1% to $3.31 trillion, nearing a volatility threshold identified by FxPro analyst Alex Kuptsikevich, who noted that levels above $3.40 trillion could trigger increased selling pressure, while the Fear and Greed Index climbed to 74, just below extreme greed territory.

Institutional Flows and Macro Catalysts Drive Crypto Strength

Institutional adoption continues to accelerate, with Federal Housing Finance Agency Director Bill Pulte announcing on social media that Fannie Mae and Freddie Mac will incorporate cryptocurrency holdings into mortgage evaluations, potentially expanding Bitcoin's role in traditional finance. This development aligns with the Federal Reserve's plan to overhaul bank capital requirements, which could enhance liquidity for risk assets. Spot Bitcoin ETFs recorded a robust $548 million net inflow, marking 12 consecutive days of positive flows and boosting total holdings to approximately 1.23 million BTC, according to Farside Investors. On-chain metrics reinforce this optimism, with Bitcoin's hashrate at 803 EH/s and total fees amounting to 4.81 BTC or $515,528, signaling robust network activity. Meanwhile, Metaplanet's purchase of an additional 1,234 BTC for $133 million solidifies corporate accumulation trends, while Bit Digital's strategic shift to Ethereum ETH staking highlights growing altcoin interest.

Altcoin Performance and Derivative Positioning Offer Trading Insights

Altcoins displayed mixed movements, with SEI surging 50% over the week due to institutional recognition from Wyoming's state-backed dollar pilot, pushing decentralized exchange volume to a record $60 million. However, analysts caution that funding rates exceeding 0.05% could indicate over-leveraging risks. Bitcoin Cash BCH gained 1.62% to $501.80, with a 24-hour high of $508.40, while PEPE and XMR saw significant open interest increases in perpetual futures, suggesting hedging activity. Ethereum ETH rose 1.29% to $2,473.17, supported by spot ETH ETF inflows of $60.4 million and cumulative holdings of 4.06 million ETH. Derivative markets showed CME Bitcoin futures open interest jumping to a four-week high of 159,850 BTC, though the basis remained flat below 10%, weakening bullish positioning narratives.

Technical Analysis and Upcoming Events Shape Market Outlook

Technically, the Bitcoin-Bitcoin Cash pair on Binance is signaling a potential golden cross, with the 50-day simple moving average poised to cross above the 200-day SMA, a long-term bullish indicator. Support for Bitcoin is firm near $106,414 based on the 24-hour low, with resistance at $108,250, presenting buy-on-dip opportunities. Upcoming catalysts include CME Group's introduction of spot-quoted futures for Bitcoin and Ethereum on June 30, pending regulatory approval, and key U.S. economic data releases such as May durable goods orders and Q1 GDP figures on June 26. These events, combined with a weakening dollar index down 0.56% to 97.14, could amplify volatility and create entry points for traders eyeing rebounds toward $110,000 for BTC.