Crypto update: DeFi bridges TradFi, ETH tightens supply, and BTC approaches breakout
Thursday, September 4, 2025, saw a largely stable cryptocurrency market as Ethereum (ETH) continued to rise, bolstered by bullish on-chain indications and strong institutional interest, while Bitcoin (BTC) remained above the $111,000 barrier. According to analysts, the DeFi sector continued to see strong activity, with year-to-date lending volumes climbing significantly, indicating a closer merger of traditional and blockchain-based finance.
With a 24-hour trading volume of $57.22 billion, Bitcoin was up 0.36 percent at $111,304 at the time of the previous check. According to CoinMarketCap, for the past day, the flagship cryptocurrency has been moving in a narrow range between $110,582 and $112,600. With a market valuation of $2.21 trillion, Bitcoin continued to rule the digital asset market.
Bitcoin holds above $111k as institutional flows return
The CoinSwitch Markets Desk reports that Bitcoin was repeatedly rejected close to $112,600, which is currently a significant resistance level. Prices were momentarily raised by lunchtime volume increases, but sellers intervened swiftly, causing Bitcoin to drop back into intraday lows close to $111,400. “With $111,000 acting as immediate support and $112,600 acting as resistance, the price movement is still consolidative. There are indications that institutions are switching back to Bitcoin from Ethereum, which may set up the cryptocurrency for a slow but steady increase.
However, according to Giottus CEO Vikram Subburaj, Bitcoin is stabilizing following a strong recovery from $107,000, with support at $112,000 remaining stable and $118,000 now appearing as the next obstacle. “The next catalyst might be the macro environment, particularly in light of the US Fed meeting on September 17.
Markets are pricing in a 95 percent chance of a rate cut, which may boost risk-on assets like Bitcoin,” Subburaj added.
Ethereum tests key resistance amid whale accumulation
In contrast, whale stockpiling and tightening supply have helped Ethereum (ETH) stay high throughout the week. With a 24-hour trading volume of $37.61 billion, ETH was up 1.83 percent at $4,403 at the time of the previous check. The market value of Ethereum was $531.44 billion. According to Edul Patel, CEO of Mudrex, the decline in ETH exchange reserves to a three-year low may pave the way for a supply shock.
We might witness a shift toward the external liquidity zone between $4,800 and $5,000 if ETH closes over $4,500, Patel stated. At $4,300, strong support is still present.
However, CIFDAQ’s creator and chairman, Himanshu Maradiya, thinks Ethereum’s strength aligns with the growing interest in DeFi. “DeFi lending is up 72% year-to-date, surpassing $127 billion in TVL, primarily due to institutional demand for tokenized real-world assets and stablecoins,” Maradiya stated. “DeFi is positioned as a bridge for traditional finance to access blockchain-native yield as a result of this trend.”
But Maradiya warned that aggressive leverage methods in ETH and yield-chasing treasuries could skew risk profiles, especially in a maturing market.
Altcoins trade mixed
Profit-taking caused minor drops of over 1% in Solana (SOL) and Cardano (ADA), two altcoins. The market as a whole showed cautious optimism as the Fear & Greed Index sat between Neutral and Greed.
American Bitcoin, a mining and accumulating company supported by Donald Trump Jr. and Eric Trump, was a noteworthy player outside of the conventional tokens. It soared over 110 percent on its Nasdaq debut before reducing gains.
In a significant regulatory move, Ukraine’s parliament approved a bill to legalize and tax cryptocurrencies on its first reading, indicating the country’s intention to become a regulated cryptocurrency hub.
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