Bitcoin Pulls Back from $108K as Institutional Adoption Accelerates

Bitcoin surged to an intraday high of $108,250 on Wednesday before retreating to $107,446.08 by 4 p.m. ET, marking a 0.37% decline from the peak, according to real-time market data. This pullback occurred despite bullish catalysts, including an announcement by Federal Housing Finance Agency Director Bill Pulte on X that Fannie Mae and Freddie Mac should incorporate cryptocurrency holdings into mortgage eligibility criteria. As reported by Omkar Godbole, this move could integrate digital assets into the $20 trillion U.S. housing market, fueling institutional demand and supporting long-term crypto growth. Concurrently, the Federal Reserve advanced plans to overhaul bank capital requirements, potentially easing credit creation and boosting risk assets like Bitcoin, which remains highly sensitive to fiat liquidity conditions.

Market Sentiment and Volatility Thresholds

The total cryptocurrency market capitalization increased by 1% to $3.31 trillion, approaching a critical resistance zone between $3.40 trillion and $3.55 trillion, as highlighted by FxPro analyst Alex Kuptsikevich. Kuptsikevich noted that this range historically activates sellers, preventing consolidation, with the Fear and Greed Index rising to 74—just below extreme greed—indicating heightened optimism. Bitcoin dominance dipped slightly to 65.65%, while Ethereum's ratio to Bitcoin gained 1.95% to 0.02297, reflecting ETH's relative strength. Trading volumes were robust, with BTC-USDT pairs recording $3.995 billion in 24-hour volume and ETH-USDT at $212.846 million, underscoring active participation despite the retracement.

ETF Flows and Corporate Accumulation

Spot Bitcoin ETFs saw a net inflow of $548 million on Wednesday, extending a 12-day streak of positive flows, according to Farside Investors. Cumulative inflows reached $48.12 billion, with total BTC holdings at approximately 1.23 million. Spot Ethereum ETFs also attracted $60.4 million in net inflows, pushing cumulative totals to $4.14 billion. Corporate actions reinforced bullish sentiment: Metaplanet purchased an additional 1,234 BTC for $133 million, raising its holdings to 12,345 BTC at an average cost of $98,303, while Bit Digital announced a strategic shift to focus solely on ETH staking, signaling confidence in Ethereum's ecosystem amid rising staking yields.

Technical Analysis and Trading Setups

Bitcoin's price action shows key support at $106,500 (the 24-hour low) and resistance at $108,250, with a breach above potentially targeting $110,000. The BTC-BCH pair on Binance is forming a golden cross, as the 50-day simple moving average converges above the 200-day SMA, indicating long-term bullish momentum. Ethereum traded between $2,382.17 and $2,497.08 over 24 hours, settling at $2,473.17, with a funding rate of -0.0004% on Binance suggesting neutral positioning. Derivatives data revealed increased open interest for BCH, PEPE, and XMR, hinting at speculative interest. Traders should monitor upcoming U.S. economic releases, such as May durable goods orders and Q1 GDP data on June 26 at 8:30 a.m. ET, which could influence Fed rate expectations and crypto volatility.

Altcoins displayed divergence: SEI rallied 50% weekly due to Wyoming's adoption as a settlement layer, while SOL fell 2.90% to $141.43 with high volume. Token unlocks, like Optimism's 1.79% supply release worth $16.82 million on June 30, may introduce selling pressure. Overall, with the dollar index down 0.56% to 97.14 and risk assets like Nasdaq futures rising, crypto bulls retain control. Key opportunities include buying BTC dips near $106,500 and watching ETH for breakouts above $2,500, supported by institutional inflows and macroeconomic tailwinds.