Bitcoin’s Rally Takes a Breather, But Don’t Worry, It’s Not A Dead-Cat Bounce!

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Markets

What you need to know (or pretend to know) 📚:

  • Bitcoin sat around $111,000 after a weekend of strength did a Houdini act during Monday U.S. hours. Ether, that old trickster, dipped below $4,000.
  • XRP and LINK showed up to the party and led large-cap gains, while Zcash, like a privacy-obsessed hermit, surged by 17%.
  • Arca says this “rebound” isn’t some flimsy dead-cat bounce, but rather a “structural reset,” as macro risks ease up a bit. But, really, what do they know? 🤔

The crypto world had a lovely weekend fling, but then it stalled faster than a soggy soufflé on Monday. Investors are still clutching their pearls, fearing further falls. It’s almost like they’ve seen this play before…

Bitcoin traded just above $111,000 late Monday, making a modest 2% increase in the last 24 hours, but was a far cry from its earlier highs. Ether couldn’t keep up and slipped below $4,000, down by a modest 0.2% on the day. Nice try, Ether, better luck next time!

Chainlink, the quiet achiever, led gains in the CoinDesk 20 Index, and, of course, privacy-focused tokens like Zcash (which is not in the index-how rude) had their moment in the spotlight with a 17% rally. Privacy is back, and it’s bringing friends.

In other thrilling news, Bitcoin mining stocks were basking in the afterglow of crypto’s weekend relief rally. Riot Platforms (RIOT) shot up by nearly 10%, and MARA Holdings (MARA) gained 6%, because, of course, everyone loves a good bounce. Galaxy Digital (GLXY) also made a respectable 5% increase. 🤑

Arca’s Take: Reset, Not Breakdown (We Swear!)

While the crypto Fear & Greed Index is still deep in “fear” territory, some analysts are acting like the sky is falling. But Arca, bless their optimistic souls, are having none of it. No, they insist this isn’t just a blip on the radar. No, sir. It’s a full-fledged “reset.” Yes, really. They said that. 🧐

In a Monday note (which you can trust because it was written on a Monday, obviously), Arca’s analysts claimed the sharp sell-off earlier this month was a necessary evil, a “reset,” not some grand collapse. Apparently, the whole “spine-tingling” crash on October 10th wasn’t that bad after all. Sure, it left some traders rattled, but Arca’s point is what happens next. They believe, and who are we to argue, that the key market functions are making a grand comeback.

And look at the signs! Arca’s been watching. Exchange volumes are up by a solid 15% week-over-week. Open interest on decentralized perpetuals is growing, and liquidity is slipping back into the mix like it never left. Oh, and those signs of easing macro pressure? Stress in the U.S. regional banking sector has faded (thankfully), Fed borrowing has dropped to zero, and high-yield credit spreads are tightening again. Looks like someone’s having a good day!

So, in the words of Arca: “We’ve seen this song and dance too many times to be bearish due to a structural blip.” And just in case you weren’t convinced, they remind us, “The rebound we’re witnessing isn’t just a dead cat bounce.” Sure, Arca. Sure. 🐱

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2025-10-21 00:56