Crypto update: BTC nears breakout, ETH tightens supply; DeFi bridges TradFi

The crypto market traded mostly steady on Thursday, September 4, 2025, as Bitcoin (BTC) held above the $111,000 level, while Ethereum (ETH) maintained upward momentum, supported by bullish on-chain indicators and renewed institutional interest. Activity in the DeFi space also remained robust, with year-to-date lending volumes rising sharply, signaling deeper integration between traditional and blockchain-based finance, said analysts. 

 

At last check, Bitcoin was trading at $111,304, up 0.36 per cent, with a 24-hour trading volume of $57.22 billion. The flagship cryptocurrency has been fluctuating in a tight range between $110,582 and $112,600 over the last 24 hours, according to CoinMarketCap. Bitcoin’s market capitalisation stood at $2.21 trillion, maintaining its dominance in the digital asset space.

 

Bitcoin holds above $111k as institutional flows return

According to the CoinSwitch Markets Desk, BTC faced repeated rejections near $112,600, which has now emerged as a key resistance level. Despite midday volume spikes briefly lifting prices, sellers stepped in quickly, pulling BTC back toward intraday lows near $111,400. "The price action remains consolidative, with $112,600 as resistance and $111,000 as immediate support. We're seeing signs of institutional rotation from ETH back to BTC, which could position Bitcoin for a gradual upward move."

 

Vikram Subburaj, CEO of Giottus, on the other hand, believes that Bitcoin is consolidating after a sharp rebound from $107,000, with support at $112,000 holding firm and $118,000 now emerging as the next resistance. "The macro backdrop could be the next catalyst, especially with the September 17 US Fed meeting approaching. Markets are pricing in a 95 percent chance of a rate cut, which may boost risk-on assets like Bitcoin," Subburaj added.

 

Notably, Bitcoin’s narrative as a macro hedge continues to strengthen. Gold’s rally to a record $3,563/oz has reinforced investor appetite for alternative assets.

Ethereum tests key resistance amid whale accumulation

Ethereum (ETH), on the other hand, has remained strong through the week, buoyed by whale accumulation and tightening supply. At last check, ETH was trading at $4,403, up 1.83 per cent, with a 24-hour trading volume of $37.61 billion. Ethereum’s market cap stood at $531.44 billion. ETH exchange reserves have dropped to a three-year low, which, according to Edul Patel, CEO of Mudrex, could potentially set the stage for a supply shock.

 

“If ETH closes above $4,500, we could see a move toward the external liquidity zone between $4,800 and $5,000,” said Patel. Strong support remains at $4,300.

 

Himanshu Maradiya, founder and chairman of CIFDAQ, on the other hand, believes that Ethereum's strength coincides with growing interest in DeFi. “DeFi lending is up 72 percent year-to-date, now exceeding $127 billion in TVL, largely driven by institutional demand for stablecoins and tokenised real-world assets,” Maradiya said. “This trend positions DeFi as a bridge for traditional finance to access blockchain-native yield.”

 

However, Maradiya cautioned that yield-chasing treasuries and aggressive leverage strategies in ETH could distort risk profiles, particularly in a maturing market.

Altcoins trade mixed

Among altcoins, Solana (SOL) and Cardano (ADA) saw slight declines of nearly 1 per cent each due to profit-taking. The Fear & Greed Index hovered between Neutral and Greed, reflecting cautious optimism across the broader market.

 

A notable mover outside of the traditional tokens was American Bitcoin, a mining and accumulation firm backed by Donald Trump Jr. and Eric Trump, which surged up to 110 percent on its Nasdaq debut before paring gains.

 

Meanwhile, in a major regulatory development, Ukraine’s parliament passed the first reading of a bill to legalise and tax cryptocurrency, signaling its intent to become a regulated crypto hub.