The crypto’s late-week rally stalled during Monday’s session in the United States, with investors still fearing further declines.
Bitcoin was trading just above $111,000 Monday evening, up nearly 2% in the past 24 hours but off previous highs. Ether fell slightly below $4,000, down 0.2% on the day.
and chain link led gains in the CoinDesk 20 Index, while the privacy-focused token not included in the index, stands 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) jumped nearly 10% and 6%, respectively, while Galaxy Digital (GLXY) rose 5%.
Reset, not a breakdown, says Arca
Although concerns eased somewhat over the weekend, the Crypto Fear & Greed Index still finds itself in deep “fear” territory, with some analysts calling for an end to the bull market and a more severe correction to come.
Digital asset investment firm Arca, however, pushed back on the notion that crypto’s recent rebound was short-lived.
In a note on Monday, the company’s analysts argued that the sharp selloff that occurred earlier this month was part of a broader reset and not a collapse. “Shiver-inducing” episodes like the Oct. 10 crash and the wipeout of leverage leave traders shaken, 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. Trading volumes are up about 15% week-over-week, open interest on decentralized perpetuals is increasing again, and liquidity is returning, they said.
Arca analysts also noted an easing of macroeconomic pressure. Tensions in the U.S. regional banking sector appear to have eased, with borrowing from the Fed’s emergency liquidity facilities falling to zero on Friday and high-yield credit spreads are tightening again, signaling calmer conditions.
“We have seen this song and danced to it too many times to be pessimistic about a structural problem,” Arca wrote. “The rebound we are seeing is not just the rebound of a dead cat.”
