Bitcoin Holds Steady Above $110,000 Amid Broader Crypto Gains and DeFi Surge
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Bitcoin prices remained steady on Monday, showing a notable increase of over half a percent and maintaining a position above the $110,000 threshold as the broader cryptocurrency market posted gains. The largest digital asset surged 0.52%, bringing its price to $111,259. Meanwhile, Ethereum experienced a slight uptick of 0.05%, reaching $4,295. Among alternative cryptocurrencies, XRP saw a robust increase of 2.37%, Solana rose by 2.2%, and Dogecoin led the pack with an impressive 6.8% surge.
Despite experiencing all-time highs of $124,457.12 on August 14, Bitcoin appears to be stabilizing in its current price range, even as September is often viewed as a challenging month for the cryptocurrency market. Avinash Shekhar, Co-Founder and CEO of Pi42, noted that Bitcoin is currently positioned near resistance levels. He suggested that a breakout from these levels could kickstart significant upward momentum, despite ongoing discussions regarding a potential correction to $100,000.
Shekhar highlighted the growing illiquid supply of Bitcoin, which has reached a record high of 14.3 million. This figure suggests that long-term holders are continuing to accumulate the asset, though signs of decreasing demand for treasury allocations could indicate shifts in market confidence. He also pointed out that Dogecoin is spearheading a rally among altcoins, with Solana, XRP, and Tron also benefiting from renewed market enthusiasm. The narratives surrounding increased adoption, particularly in Solana and XRP—which focus on remittance applications and ongoing speculation about Exchange-Traded Funds (ETFs)—are driving active trading.
Furthermore, expectations surrounding a potential interest rate cut by the U.S. Federal Reserve are providing a supportive environment for the crypto market.
Adding to the positive sentiment, decentralized finance (DeFi) activity has been on the rise. “What stands out is the 72% year-to-date increase in DeFi lending, which currently exceeds $127 billion in total value locked (TVL), driven by institutional demand for stablecoins and tokenized real-world assets,” stated Himanshu Maradiya, Founder and Chairman of CIFDAQ. He emphasized that this trend illustrates DeFi’s growing role as a link between traditional finance and innovative blockchain-based yield opportunities.
However, Maradiya expressed concerns regarding the potential risks associated with aggressive yield-chasing strategies in Ethereum investments, warning that leverage-driven returns might skew risk profiles as the market matures.
On the regulatory front, a joint statement from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) has indicated that regulated exchanges may soon support spot crypto products. This development marks a significant step toward the mainstream integration of digital assets into established financial markets.
With Bitcoin accumulation holding strong, alternative cryptocurrencies showing leadership, and DeFi participation increasing, the crypto markets are displaying signs of optimism in the short term. However, the historical seasonal weaknesses and prevailing regulatory uncertainties continue to pose challenges.