A weeend bounce in crypto stalled during the Monday U.S. session with investors still fearing further declines

Bitcoin BTC$110,717.88 traded just above $111,000 late Monday, up nearly 2% over the past 24 hours but off earlier highs. Ether ETH$3,983.63 slipped slightly below $4,000, down 0.2% on the day.

XRP$2.4930 and Chainlink LINK$18.64 led gains in the CoinDesk 20 Index, while privacy-focused token ZEC$267.24, not included in the index, stood out with a 17% rally.

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%.

While concerns somewhat eased over the weekend, the Crypto Fear & Greed Index is still in deep “fear” territory with some analysts calling for the end of the bull market and more severe correction coming.

Digital asset investment firm Arca, however, pushed back on the idea that the recent 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 October 10’s 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. Exchange volumes have risen about 15% week-over-week, open interest on decentralized perpetuals is building again, and liquidity is returning, they said.

Arca analysts also noted easing macro pressure. Stress in the U.S. regional banking sector appears to have faded, borrowing from the Fed’s emergency liquidity facilities dropped 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 bearish due to a structural blip,” Arca wrote. “The rebound we’re witnessing isn’t just a dead cat bounce.”