On Friday, cryptocurrency markets experienced a notable surge in prices, as Bitcoin momentarily surpassed the $116,000 threshold for the first time since late August, before settling just below $115,500. The surge in Bitcoin was reflected in Ethereum, with both top cryptocurrencies witnessing substantial increases driven by favorable market sentiment and robust institutional investments. Overall, analysts observed that the market sentiment remains optimistic in the near term.
The Altcoin Season Index has risen to 67, up from 29 just a month ago, showing a significant boost in altcoin momentum that could signal an upcoming altseason. Bitcoin reached a peak of $116,317 but failed to maintain its momentum beyond that threshold. As of the latest update, the price stands at $115,443, reflecting a 1.12 percent increase over the past 24 hours. During the session, Bitcoin showed fluctuations, trading within a range of $113,453 to $116,317. Bitcoin’s daily trading volume has surged to $52.17 billion, with its market capitalisation holding strong at $2.29 trillion, reinforcing its position as the top digital asset worldwide. Vikram Subburaj, highlighted that the rally is being driven by growing optimism about a possible rate cut by the US Fed, after the US CPI data was released and aligned with expectations. This strengthened anticipation for a rate reduction by the US Fed in September. Furthermore, the stance in derivatives remains careful, as the options skew is tilted towards puts. Liquidation maps show that long leverage is heavily focused just under the $110,000 level. This reveals a certain vulnerability hidden beneath the surface, even with the continuous stable inflows into ETFs.
The CPI data has given bulls a moment to relax. “However, Bitcoin needs to surpass $115,000 convincingly, or it may fall into the well-known pattern where initial gains diminish into setbacks,” stated Subburaj. Reflecting this viewpoint, Edul Patel pointed out that with the steady inflation metrics and falling PPI figures, the market has likely priced in a 25 bps rate cut in the coming week. Moreover, the 741 million inflows into Bitcoin ETFs have also contributed to the upward momentum. Riya Sehgal, highlighted strong institutional inflows as the key factor fueling the rally. On September 11, US spot Bitcoin ETFs had a notable effect, contributing more than $552 million and elevating total assets under management to surpass $148 billion. Bitcoin faces resistance at $116,344. BTC shows technical strength, staying above all key EMAs, with the 20-day EMA around $113,650 acting as immediate support. However, the 116,344 zone has emerged as a key resistance level, where analysts noted that profit-taking has been visible. “A breakout above this level with sustained volume could pave the way towards $118,500–$120,000, while a rejection may lead to a retest of the $113,500–$112,200 range,” stated Sehgal.
Patel asserts that if the flagship coin succeeds in closing above the current levels, it would confirm a bullish trajectory, propelling the asset towards $118,000. “Meanwhile, the support has also moved up to $113,700, creating a solid foundation,” stated Patel. Ethereum saw significant increases, reflecting a broader positive movement across the cryptocurrency market. At the latest update, the price was $4,523.23, reflecting a 2.56 percent rise over the last 24 hours. Throughout the day, Ethereum’s price fluctuated, moving between $4,370 and $4,534. Even with the recent increases, ETH remains approximately 9 percent under its latest high of $4,953, noted on August 25 this year. The broader altcoin market showed significant strength. Ondo, Aerodrome Finance, Raydium, Pudgy Penguins, Solana, Jupiter, Pyth Network, Bonk, MemeCore, Pump.fun, Dogecoin, Virtuals Protocol, Chainlink, Kaspa, FLOKI, Hedera, Fartcoin, Curve DAO Token, dogwifhat, Immutable, Pendle, and Tezos have emerged as notable gainers in the altcoin market, with increases reaching up to 9 percent.
In contrast, MYX Finance stood out as the leading underperformer, experiencing a decline of 25 percent. Four, Worldcoin, Story, XDC Network, Conflux, Avalanche, and Mantle were among the notable laggards, experiencing declines of up to 11 percent. The bulls dominate, over $104 million has been liquidated, with $101.67 million originating from short positions. After the success of the Bitcoin spot ETF, BlackRock is currently exploring the possibilities of a tokenized ETF. The launch of trading has been postponed to Friday, September 12. Meanwhile, Fidelity’s Solana fund and Canary’s XRP and Hedera funds are officially listed on the DTCC platform.