A weeend jump in crypto stalled during Monday’s US session, with investors still fearing further declines
Bitcoin traded just above $111,000 late Monday, up nearly 2% over the past 24 hours but off previous highs. Ether fell just below $4,000, down 0.2% on the day.
and Chainlink led gains in the CoinDesk 20 index, while the privacy-focused token not included in the index, stood out with an increase of 17%.
Most digital asset-related stocks were also in the green on Monday, benefiting from crypto’s weekend relief rally. Bitcoin miners Riot Platforms ( RIOT ) and MARA Holdings ( MARA ) rose nearly 10% and 6%, respectively, while Galaxy Digital ( GLXY ) rose 5%.
Reset, not a crash, says Arca
While concerns eased somewhat over the weekend, the Crypto Fear & Greed Index remains in deep “fear” territory, with some analysts calling for the end of the bull market and a more serious correction on the way.
However, digital asset investment firm Arca pushed back on the idea that the latest crypto bounce is short-lived.
In a Monday note, the firm’s analysts argued that the sharp selloff earlier this month was part of a broader reset, not a collapse. “Spine-tingling” episodes like the Oct. 10 crash and leveraged wipeout leave traders rattled, but the key, Arca analysts wrote, is what happens next: and right now, key market functions are recovering.
They pointed to several signs of structural healing. Currency volume is up about 15% week-over-week, open interest on decentralized perpetuals is building back up and liquidity is returning, they said.
Arca analysts also noted easing macro pressures. Stress in the US regional banking sector appears to have eased, with borrowing from the Fed’s emergency liquidity facilities falling to zero on Friday and high interest rate spreads tightening again, signaling calmer conditions.
“We’ve seen this song and dance too many times to be bearish on a structural blip,” Arca wrote. “The recovery we are witnessing is not just a dead cat jump.”
