Bitcoin Retreats From $108K Amid Bullish Institutional Momentum

Bitcoin experienced a modest pullback after briefly surging above $108,000, settling near $107,446 as of late Wednesday, according to real-time trading data. Despite this 0.37% dip from its intraday high, the broader crypto market remains buoyant, with total capitalization hovering around $3.31 trillion. Institutional catalysts continue to drive optimism, highlighted by Bill Pulte, director of the Federal Housing Finance Agency, announcing on X that Fannie Mae and Freddie Mac will now consider cryptocurrency holdings in mortgage assessments—a move reinforcing U.S. adoption under pro-crypto policies. Simultaneously, the Federal Reserve's progress on easing bank capital requirements signals enhanced liquidity for risk assets, amplifying BTC's sensitivity to fiat conditions. FxPro analyst Alex Kuptsikevich notes the market is approaching a critical volatility threshold at $3.4 trillion, with the Fear and Greed Index at 74, nearing extreme greed territory, indicating sustained bullish sentiment despite technical resistance.

ETF Inflows and On-Chain Metrics Signal Strength

Spot Bitcoin ETFs recorded a robust $548 million net inflow, marking the 12th consecutive day of positive flows and lifting cumulative holdings to 1.23 million BTC. Similarly, spot Ethereum ETFs saw $60.4 million inflows, bolstering ETH's price to $2,473. Corporate treasury strategies intensified, with Japan's Metaplanet purchasing an additional 1,234 BTC, elevating its total to 12,345 BTC at an average price of $98,303. On-chain activity reveals a spike in USDtb borrowing on Aave to record highs, reflecting surging demand for yield-bearing stablecoins in DeFi. The Bitcoin network's hashrate held steady at 803 EH/s, while hashprice dipped to $54.23, underscoring miner resilience amid price consolidation. Trading volumes surged across major pairs, with BTC/USDT volume hitting $4.77 billion in 24 hours, per exchange metrics.

Technical Analysis and Derivatives Positioning

Technical indicators suggest a golden cross is imminent for the BTC/BCH pair, with the 50-day SMA poised to cross above the 200-day SMA—a historically bullish signal. Bitcoin's slight retreat coincided with a 9% rise in perpetual futures open interest, hinting at hedging activity. CME BTC futures open interest jumped to a four-week high of 159,850 BTC, though flat basis rates below 10% temper bullish leverage narratives. Altcoins showed mixed performance: BCH gained 1.66% to $502, while PEPE and XMR saw notable open interest increases. ETH/BTC ratio climbed 1.95% to 0.02297, with Deribit options reflecting normalized risk reversals and slight put premiums in near-term ETH tenors. For traders, key support lies at $106,414 (BTC/USDT low), with resistance at $107,894, offering swing opportunities amid macro uncertainty.

Macro Catalysts and Cross-Market Correlations

Upcoming U.S. economic data releases, including May durable goods orders and Q1 GDP revisions on June 26, could sway crypto markets. Weak manufacturing or GDP contractions may fuel expectations for Fed rate cuts, weakening the dollar index—already down 0.56% to 97.14—and benefiting BTC. Nasdaq futures hit record highs, signaling persistent risk-on sentiment, while gold and silver rose 0.33% and 1.45%, respectively. Hong Kong's new digital asset policy framework aims to streamline regulations and expand tokenization, potentially boosting Asian institutional flows. Traders should monitor June 27’s Core PCE Price Index—a key inflation gauge—with estimates at 2.6% YoY, as hotter data could trigger volatility. CME's planned spot-quoted futures launch on June 30 may further integrate crypto with traditional finance, enhancing liquidity for long-term positions.