Crypto’s weekend surge stalled during Monday’s US session and investors still fear further declines
Bitcoin It traded above $111,000 late Monday, up nearly 2% over the past 24 hours, but below earlier highs. ether It slipped just below $4,000, down 0.2% on the day.
and chainlink CoinDesk 20 Index Gains While Privacy-Focused Tokens Not included in the index, stood out with a gain 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 MRA Holdings (MARA) jumped nearly 10% and 6%, respectively, while Galaxy Digital (GLXY) gained 5%.
Arca says reset, not breakdown
Although concerns subsided somewhat over the weekend, the Crypto Fear and Greed Index is still deep in “fear” territory, with some analysts calling for an end to the bull market and a more serious correction to come.
However, digital asset investment firm Arca rejected the idea that the recent crypto boom is short-lived.
In a note Monday, company analysts argued that the sharp selloff earlier this month was part of a broader reset, not a collapse. “Spin-tingling” episodes like the October 10 crash and the leveraged wipeout have unsettled traders, but the main thing is what happens next: And right now, key market functions are recovering, Arca analysts wrote.
He pointed to several indications for structural treatment. Exchange volume is up nearly 15% week-on-week, he said, open interest on decentralized perpetuals is rising again, and liquidity is back.
Arca analysts also noted easing of broader pressures. Stress in the US regional banking sector appears to have eased, with borrowings from the Fed’s emergency liquidity facilities dropping to zero on Friday, and high-yield credit spreads tightening again, indicating calmer conditions.
Arca wrote, “We’ve seen this song-and-dance meltdown several times due to structural glitches.” “The rebound we’re seeing is not just a dead cat bounce.”