Despite a volatile month, the broader crypto market is gradually recovering, with bitcoin prices briefly trading at $64,000 on Monday morning. Over the weekend, the price of the world's largest cryptocurrency even flirted with $65,000 on the news that the Federal Reserve might pursue interest cuts in September.

The expansion of stablecoins has been a strong factor propelling an increase in crypto prices. Over an average of seven days, $1 billion in stablecoins have been minted, said Markus Thielen, the founder of 10x Research.

"Technically speaking, it’s looking more and more like we are in a bullish consolidation ahead of the next big push higher," added Joel Kruger, market strategist at LMAX group in a new report. "This would translate to bitcoin making fresh record highs and ETH breaking out to another yearly high on its way to challenge its own record high from 2021."

Ethereum's record price level is around $4600, which it once hit in 2021. Ethereum would need to rally another 70% to reclaim that high.

Altcoins like Solana are also enjoying a 3% bump in the last 24 hours, even though the prospect of a Solana-based exchange-traded fund (ETF) is facing fresh challenges.

Nevertheless, the Federal Reserve's upcoming rate cuts also fueled growth in spot bitcoin ETFs, with U.S. bitcoin ETFs accumulating more than $252 million in daily net inflows on Friday, representing the highest flows since early July. The eleven bitcoin ETFs also racked up more than $3 billion in trading activity, one of the best performances of the year, with BlackRock's iShares Bitcoin Trust ETF and the Fidelity Wise Origin Bitcoin Fund (FBTC) accounting for the largest wave of volumes.