Bitcoin (BTC) traded at $112K on Sept. 8 with jaw-dropping amounts of support and longer-term holding. Prices ranged between $110,000 and $112,259, and analysts credited firm consolidation in the resistance zones. The analysts indicated that despite recent negative volatility, Bitcoin’s ability to stay above the psychological $110K threshold is a sign of firm institutional buy support and reduced selling pressure.
Accumulation also peaked. Figures showed that illiquid supply of Bitcoin stood at 14.3 million coins, proof of investors’ faith and a shift away from short-term trading.
Altcoins Boom as DeFi Lending Expands
Altcoins also performed well. Dogecoin rose the most, rising by 6.8%, with Solana rising by 2.2%. XRP rose by 2.37%, with other coins like Worldcoin, SPX, Hyperliquid, and Polkadot rising between 7% and 27%.
The prices were a reflection of the recent surge in activity witnessed in decentralized finance (DeFi) lending platforms as they recorded a 72% year-to-date growth. Locked value in DeFi protocols rose to over $127 billion, reflecting heightened interest in the market.
The Market analysts also add that the DeFi wave helped improve sentiments for low- and mid-cap tokens, thus triggering altcoins lagging behind for weeks to catch up.
MYX Finance Skyrockets Amid Suspicion
The biggest gainer was MYX Finance, which increased by over 150% within a day. The token value increased from approximately $1.58 to over $4.18, driven by fireworks trading volumes. Trading volume crossed $326 million in a span of 24 hours, with perpetual futures volume growing over 2,300%.
However, the dramatic rise raised concerns. The rally was preceded by a huge token unlock, and insiders were blamed by some analysts of insider manipulation. The simultaneous action on more than one exchange and the unforeseen spike in open interest, 138% more, suggested coordinated activity. Critics warned that such a rise was evidence of insiders’ pump-and-dump schemes to short sell liquidity.
Bitcoin Market Outlook: Cautious Optimism
Even at $112K, analysts are positive. Analysts cited upcoming resistance of around $112K to $113K as a break above the same which has the potential to usher new buying pressure. Conversely, if Bitcoin drops below $110K, support levels will decrease in a devastating manner the next time.
Meanwhile, DeFi resilience and the altcoin bubble are outgrowths of a mature market. The MYX situation, however, assures the persistent danger of manipulation of the small tokens. The investor should be careful because volatility remains present.
