Bitcoin Holds Above $111K as Crypto Market Rebounds Amid Broader Reset Signs

A weekend rebound in the crypto market lost some steam during Monday’s U.S. session, with investors still cautious about potential further declines. Bitcoin (BTC) traded just above $111,000, gaining nearly 2% over the past 24 hours but pulling back from earlier highs. Ether (ETH) slipped slightly below $4,000, down 0.2% on the day, as market sentiment remained mixed.

Among altcoins, XRP ($2.49) and Chainlink (LINK, $18.69) led the CoinDesk 20 Index gains, while privacy-focused Zcash (ZEC) surged 17%, outperforming most major tokens. Crypto-related equities mirrored the weekend rally, with Riot Platforms (RIOT) and MARA Holdings (MARA) climbing 10% and 6%, respectively. Galaxy Digital (GLXY) also advanced 5%, signaling improved investor appetite across the digital asset ecosystem.

Despite lingering fear, the Crypto Fear & Greed Index remains in deep “fear” territory. Some analysts warn that the bull market could be nearing its end, but digital asset investment firm Arca sees the latest dip as a market reset rather than a breakdown.

In a Monday report, Arca analysts emphasized that the sharp selloff earlier this month represents a healthy recalibration. They noted that trading volumes are up 15% week-over-week, open interest in decentralized perpetuals is growing again, and liquidity is returning to the market.

Easing macroeconomic pressures also support recovery. Stress in U.S. regional banks has subsided, emergency Fed borrowing fell to zero last week, and tightening credit spreads point to renewed stability.

Arca concluded that market “shakeouts” like the October 10 crash often precede rebounds, stating, “We’ve seen this song and dance too many times to be bearish over a structural blip. The rebound we’re witnessing isn’t just a dead cat bounce.”