Bitcoin Surges 10% to $108,000 Amid Regulatory Support

Bitcoin surged past $108,000 on Wednesday, marking its highest level in recent weeks. This surge occurred despite renewed tensions in the Middle East and a U.S. stock market that remained just below its all-time highs. The world’s original cryptocurrency reached this intraday peak without hesitation, even as other altcoins like Ether and Solana experienced slight dips in the afternoon.

Meanwhile, regulatory developments in Washington, D.C., added to the momentum. Federal Reserve Chair Jerome Powell acknowledged before the Senate Banking Committee that stablecoins have evolved significantly and are now firmly integrated into the traditional financial framework. This recognition underscores the growing acceptance of cryptocurrencies as a legitimate part of the financial system.

In a related move, the head of the Federal Housing Finance Agency, Billy Pulte, directed Fannie Mae and Freddie Mac to review how crypto assets, including Bitcoin, could be used to qualify for mortgages. This directive, coming from a family with substantial influence in the housing sector, may be seen as a green light for digital assets in U.S. real estate financing.

Inside the New York Stock Exchange, officials are advancing a proposal linked to President Donald Trump’s Truth Social platform. The exchange submitted a rule change request that would allow the listing of a Bitcoin and Ethereum ETF directly tied to Trump’s company. If approved by the Securities and Exchange Commission, this ETF could launch within 90 days, further integrating crypto into mainstream finance and aligning with Trump’s push to expand crypto’s role in the American financial system.

On-chain analytics reveal a significant divide in market behavior. Retail holders, those with less than 1 BTC, have been consistently selling. These addresses dropped to 1.69 million BTC, a year-over-year decline of 54,500 BTC, with daily outflows averaging 220 BTC. Over the past 12 months, these wallet movements had a –0.89 correlation to price, indicating that as they sold, the price climbed higher. Conversely, large wallets holding at least 1,000 BTC now control 16.57 million BTC, after adding over 507,000 BTC in a year. These wallets are absorbing around 1,460 BTC per day and show a +0.86 correlation to price, meaning their activity tracks upward movement.

This imbalance is stark. Institutions are taking in nearly seven times the amount retail holders are letting go. With only 450 BTC mined daily after the halving, the pressure on supply is evident. However, unlike previous bull runs, there is no retail FOMO (Fear of Missing Out) yet, and individual holders are still exiting, suggesting that the current rally might not be close to peaking.

On Binance, a significant move occurred on June 24 when Net Taker Volume topped $100 million, the highest since June 9. This surge is typically seen when overleveraged shorts get wiped out or when retail traders pile in all at once. These bursts can fuel short-term buying but do not guarantee lasting demand. Additionally, this activity coincided with $1.25 billion in stablecoin outflows from derivatives exchanges, the largest since mid-May.

Traders are closely monitoring the Realized Price, or cost basis, of short-term holders (STH). These wallets, which hold for fewer than six months, represent over 40% of Bitcoin’s total market cap, making their entry points critical. Currently, wallets in the 1 week to 1 month group are holding at $106,200, those in the 1 to 3 month range sit at $95,000, and wallets from 3 to 6 months ago are at $93,300. When weighted, the average cost basis is about $97,700.

This level is crucial. Bitcoin’s current price is hovering near $100,000, a level that matters both emotionally and technically. If the price dips below $97,000, a chain reaction of panic selling could hit the market, especially from STHs who are already nervous. This narrow range is both fragile and dangerous, highlighting the potential for significant market movements in the near future.