Bitcoin prices demonstrated resilience on Monday, trading over half a percent higher and firmly maintaining a position above the $110,000 threshold. The world’s largest cryptocurrency increased by 0.52%, reaching $111,259, while Ethereum also saw a slight uptick of 0.05%, settling at $4,295. In the altcoin sphere, XRP experienced a notable gain of 2.37%, Solana rose by 2.2%, and Dogecoin surged by an impressive 6.8%.
Despite being known as a volatile month for cryptocurrencies, September has seen Bitcoin make strides towards stabilization after hitting an all-time peak of $124,457.12 on August 14. Avinash Shekhar, Co-Founder and CEO of Pi42, remarked, “Bitcoin is stabilizing near resistance levels, where a breakout could trigger a massive broader upside,” even as discussions about a potential $100,000 correction circulate. Notably, Bitcoin’s illiquid supply has reached a new record of 14.3 million, indicating continued accumulation by long-term holders, although a decrease in treasury demand suggests shifting drivers of investor conviction.
Further emphasizing the altcoin rally, Shekhar pointed out that Dogecoin is taking the lead with renewed momentum, while Solana, XRP, and Tron also benefit from this upward trend. The narratives surrounding increased adoption in Solana and XRP—especially considering remittance use cases and speculation around Exchange Traded Funds (ETFs)—are contributing to heightened trading interest. Additionally, expectations of a potential interest rate cut by the US Federal Reserve are lending a supportive macroeconomic backdrop to this bullish sentiment.
In parallel, the decentralized finance (DeFi) sector continues to thrive, with a remarkable 72% year-to-date increase in DeFi lending, surpassing $127 billion in total value locked (TVL). Himanshu Maradiya, Founder and Chairman of CIFDAQ, highlighted that this growth, driven largely by institutional demand for stablecoins and tokenized assets, suggests that DeFi is maturing into a conduit for traditional finance to tap into blockchain-native yield opportunities. However, he also warned of the risks posed by aggressive yield-chasing strategies in Ethereum treasuries, noting that leverage-driven returns can distort risk profiles in the evolving market landscape.
On the regulatory front, a joint statement from the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) indicated a move towards allowing regulated exchanges to support spot cryptocurrency products, a significant development for integrating digital assets into mainstream financial markets.
As Bitcoin accumulation remains robust and altcoins take centre stage, alongside a noteworthy rise in DeFi participation, the cryptocurrency landscape is exhibiting signs of short-term optimism, even in the face of traditional seasonal weaknesses and lingering regulatory uncertainties.
