Bitcoin Holds Above $110K as Altcoins Rally, DeFi Tokens Lead Surge

Bitcoin hovered just above the $110,000 mark for the second straight day, supported by strong gains across altcoins. The leading cryptocurrency rose 0.9% in the past 24 hours, mirroring a broader market uptick that pushed the CoinDesk 20 Index up 3.3%. Ether (ETH), Solana (SOL), and Chainlink (LINK) posted 5%–7% gains, but DeFi tokens were the real standouts.

Uniswap (UNI) surged 24%, while Aave (AAVE) jumped 13%, fueled by bullish remarks from SEC Chair Paul Atkins on decentralized finance. Despite the rally, the broader crypto market sentiment remains cautious. Vetle Lunde of K33 Research noted that funding rates remain subdued, with Binance’s BTC perpetual swaps showing negative funding on several days last week. The average annualized funding rate sits at just 1.3%, typically a signal of market bottoms rather than peaks.

Bitcoin’s price action also contrasts with declining flows into leveraged ETFs. The ProShares 2x Bitcoin ETF (BITX) currently holds exposure to 52,435 BTC—down from its December 2023 peak of 76,755 BTC. This conservative positioning, however, leaves room for a potential bullish move.

Meanwhile, crypto stocks remained flat, with the exception of Semler Scientific (SMLR), whose shares fell 10%, now valued below the bitcoin on its balance sheet. While some analysts remain optimistic about a continued rally, others remain skeptical.

Kirill Kretov of CoinPanel warns the move may be part of another volatility cycle, not a sustainable breakout. He highlights support levels at $105,000 and $100,000, which could come into play if sentiment shifts. Still, low leverage and defensive positioning suggest the market could be primed for further upside.