Bitcoin Retreats from $108K as Institutional Adoption Accelerates

Bitcoin (BTC) retreated from an intraday high of $108,250 on Wednesday, settling at $107,446.08 by 4 p.m. ET, marking a 0.37% decline from the peak but still up 0.17% over 24 hours. This pullback occurred amid bullish institutional catalysts, including Federal Housing Finance Agency Director Bill Pulte's announcement that Fannie Mae and Freddie Mac are preparing to consider cryptocurrency holdings in mortgage assessments, potentially integrating digital assets into the U.S. housing market. This development, combined with the Federal Reserve advancing a plan to overhaul bank capital requirements, could enhance liquidity for risk assets, as noted by analysts tracking fiat conditions. The crypto market capitalization rose 1% to $3.31 trillion, nearing a volatility threshold at $3.40–3.55 trillion, according to FxPro's Alex Kuptsikevich, with the Fear and Greed Index climbing to 74, just below extreme greed.

Sustained ETF Flows and Market Sentiment Indicators

Spot Bitcoin ETFs recorded a net inflow of $548 million, extending a 12-day streak of positive flows and pushing cumulative inflows to $48.12 billion, as reported by Farside Investors. Total BTC holdings now stand at approximately 1.23 million, underscoring robust institutional demand. Japanese firm Metaplanet purchased an additional 1,234 BTC for $133 million, elevating its total to 12,345 BTC and solidifying its position as a top corporate holder. Concurrently, Ethereum (ETH) gained 1.41% to $2,473.17, with spot ETH ETFs seeing $60.4 million in inflows. Broader market indicators showed weakness in the dollar index (DXY), which fell 0.56% to 97.14, and strength in traditional markets like the Nasdaq Composite, which closed up 0.31% at 19,973.55, reinforcing risk-on sentiment.

Altcoin Performance and Derivatives Positioning

Altcoins exhibited varied movements, with Solana (SOL) surging 2.86% to $146.24 and Cardano (ADA) rising 1.29% to $0.5561. Derivatives markets signaled cautious optimism, as BTC perpetual futures open interest increased on major exchanges, particularly for Bitcoin Cash (BCH), PEPE, and Monero (XMR), suggesting hedging against potential declines. CME BTC futures open interest jumped to 159.85K BTC, a four-week high, though the basis remained flat below 10%. On-chain metrics revealed a BTC hashrate of 803 EH/s and hashprice at $54.23. Technically, the BTC/BCH pair on Binance is forming a golden cross, with the 50-day SMA poised to cross above the 200-day SMA, indicating long-term bullish potential. For traders, key support for BTC lies at $106,400 (24-hour low), with resistance at $108,500, while altcoins like SEI, up 50% weekly, offer opportunities but require monitoring for leverage indicators like funding rates exceeding 0.05%.

Upcoming macro events, such as U.S. durable goods orders data on June 26 at 8:30 a.m. ET, could influence crypto volatility, with estimates showing a rebound from previous declines. Token unlocks, including Optimism's OP releasing 1.79% of supply worth $16.82 million on June 30, may introduce selling pressure. Despite the retreat, the confluence of institutional inflows, dollar weakness, and technical setups suggests BTC bulls remain in control, making dips to support levels strategic entry points for traders eyeing a breakout above $108,500.