The weekend bounce in cryptocurrencies stalled during Monday’s US session and investors still fear further declines.
bitcoin traded just above $111,000 on Monday night, up almost 2% in the last 24 hours, but far from previous highs. Ether fell slightly below $4,000, down 0.2% on the day.
and chain link led gains on CoinDesk 20 index, while privacy-focused token not included in the index, stood out with a rebound of 17%.
Most digital asset-related stocks were also in the green on Monday, benefiting from the weekend’s crypto relief rally. Bitcoin miners Riot Platforms (RIOT) and MARA Holdings (MARA) are up nearly 10% and 6%, respectively, while Galaxy Digital (GLXY) is up 5%.
Restart, no breakdown, says Arca
While concerns eased somewhat over the weekend, the Crypto Fear & Greed Index is still in deep “fear” territory with some analysts calling for an end to the bull market and a more severe correction.
However, digital asset investment firm Arca rejected the idea that the recent crypto bounce is short-lived.
In a note on Monday, the company’s analysts argued that the sharp sell-off earlier this month was part of a broader reset, not a collapse. “Chilling” episodes like the Oct. 10 crash and falling leverage leave traders uneasy, but the key, Arca analysts wrote, is what happens next: And right now, key market features are recovering.
They pointed out several signs of structural healing. Trading volumes are up about 15% week over week, open interest in decentralized perpetuals is rising again, and liquidity is returning, they said.
Arca analysts also noted a decline in macro pressure. Stress in the US regional banking sector appears to have dissipated, borrowing from the Federal Reserve’s emergency liquidity facilities fell to zero on Friday and high-yield credit spreads are tightening again, signaling calmer conditions.
“We’ve seen this song and dance too many times to be bassists because of a structural problem,” Arca wrote. “The rebound we are seeing is not just the rebound of a dead cat.”
