Bitcoin briefly surged to $108,250 on Wednesday, marking a significant milestone before retreating to $107,446.08 by 4 p.m. ET, according to market data. This pullback comes amid heightened institutional interest, with the Federal Housing Finance Agency director Bill Pulte announcing on X that Fannie Mae and Freddie Mac should consider cryptocurrency holdings in mortgage evaluations, potentially boosting BTC adoption. Simultaneously, the Federal Reserve's progress on bank capital overhaul plans could enhance fiat liquidity, supporting risk assets like BTC. Alex Kuptsikevich from FxPro highlighted that the total crypto market capitalization reached $3.31 trillion, nearing a volatility threshold, with the Fear and Greed Index at 74, just shy of extreme greed, indicating cautious optimism among traders.

Trading Volume and ETF Flows Signal Bullish Momentum

Spot Bitcoin ETFs recorded a net inflow of $547.7 million on Wednesday, extending a 12-day streak of positive flows, as reported by Farside Investors. Total BTC holdings now stand at approximately 1.23 million, reinforcing institutional accumulation. Ethereum ETFs saw $60.4 million in inflows, with holdings at 4.06 million ETH. On-chain metrics show Bitcoin's dominance at 65.65%, while the ETH/BTC ratio rose 1.95% to 0.02297, suggesting altcoin strength. Trading volumes surged, with BTC/USDT hitting a 24-hour high of $107,590.61 and low of $106,414.03, while ETH/USDT peaked at $2,444.15. Metaplanet's purchase of 1,234 BTC for $133 million underscores corporate treasury strategies, adding to bullish sentiment.

Technical Analysis and Cross-Market Opportunities

A golden cross is forming on the BTC/BCH pair, with the 50-day SMA poised to cross above the 200-day SMA, signaling long-term bullish potential for Bitcoin Cash. Bitcoin's hash rate averaged 803 EH/s, with hashprice at $54.23, indicating miner profitability. Derivatives data revealed increased open interest, such as CME BTC futures at 159,850 BTC, a four-week high, though basis rates remained below 10%, tempering excessive leverage. Solana SOL surged 3.24% to $146.74, driven by spot-led buying, while PEPE and BCH saw open interest spikes, offering swing trade setups. Traders should monitor support at $106,400 for BTC and resistance at $108,500, with ETH eyeing $2,500 amid staking rate dips to 3.04%.

Broader Market Risks and Outlook

Macroeconomic factors, including upcoming U.S. durable goods orders and GDP data on June 26, could influence crypto prices, with a weaker dollar index down 0.56% to 97.14 supporting risk assets. However, token unlocks like Optimism OP's $16.82 million event on June 30 pose sell pressure risks. Cross-market correlations are evident, as Nasdaq futures rose to records, aligning with crypto gains. For July, traders might target ETH staking plays or AI tokens like FET, up 1.66%, if risk appetite holds, but overextended leverage in assets like SEI warrants caution per analyst warnings on funding rates exceeding 0.05%.