Bitcoin steadies at $111K as stablecoin liquidity boosts confidence

Bitcoin traded around $110,900 on Wednesday, while Ethereum declined to approximately $4,330. Analysts note that BTC is holding steady after the recent drop, with stablecoin liquidity and moderate inflows indicating growing investor confidence.

“Bitcoin is holding steady around $111K after recent turbulence, with stablecoin liquidity and moderate inflows signaling that investor confidence is quietly building. While volatility remains, the market tone is far from bearish, and capital continues to flow into quality assets. Ethereum’s defense of the $4,300 level is supported by strong treasury growth and surging dApp activity, underscoring its leadership in network utility,” said Avinash Shekhar, Co-Founder & CEO of Pi42.

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Another expert says Bitcoin’s momentum remains strong as buyers defend key levels, with expectations for the rally to continue in the near term.

“Bitcoin’s momentum remains intact as buyers continue to defend key levels. With strong inflows and improving risk sentiment, the rally is expected to extend soon. While volatility may stay elevated, dips are absorbed swiftly, keeping the broader uptrend constructive. Tactical buying remains the preferred approach,” said Parth Srivastava, Head of Quant at 9Point Capital’s Research Team.

At 10:53 AM IST, Bitcoin was trading at $110,796, up 0.62% over the past 24 hours but down nearly 1% over the past week. Ethereum traded at $4,321, down 1.35% in 24 hours and 7% over the last seven days.

According to CoinMarketCap, the crypto sector’s total market capitalization stood at approximately $3.83 trillion on Wednesday.

Vikram Subburaj, CEO of Giottus.com, noted that Ethereum is holding above $4,300 after a 15% pullback from late-August highs. The market remains cautious due to mixed signals from derivatives, with futures premiums subdued at 5% and options skew neutral, indicating traders are hesitant to push above $4,500 immediately.

However, he added that Ethereum’s structural strength goes beyond price action, positioning it well to regain momentum once broader risk sentiment stabilizes.

Market perspective

Sathvik Vishwanath, Co-Founder & CEO:

On the 4-hour chart, BTC is correcting within a descending channel after peaking at $124K. It recently found demand near $108K and is now testing mid-range resistance at $110K. The market structure shows a shift to lower highs and lows, indicating a controlled pullback. The RSI has climbed to 56, signaling short-term bullish momentum.

A breakout above $110K could open the way to $117K, while rejection may lead to a retest of the $104K support. On-chain, the adjusted SOPR remains weak, struggling above 1, suggesting profit-taking dominates. This reflects a cooling market, where rallies are sold into rather than supported by new demand.

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An expert from Giottus.com said that crypto markets edged higher as macro signals turned supportive. A federal court struck down several of President Trump’s tariffs, and expectations are growing that the Fed could deliver its first rate cut since 2024. Bitcoin’s spot market is showing early signs of strength despite recent volatility.

“Glassnode data highlights that BTC’s cost basis distribution is dense, with transactions clustering tightly around current levels. This pattern often reflects stronger conviction from buyers willing to absorb supply, which usually creates firmer support than futures-driven momentum. In past cycles, these dense layers of activity have acted as reliable anchors. This suggests that the current consolidation could be laying the groundwork for a recovery push,” Subburaj added.