Bitcoin Bounce Stalls as XRP, Zcash Lead Gains; Arca Says Rally Not a Dead-Cat Bounce

Market Overview - Bitcoin (BTC) traded just above $111,000, up nearly 2% over the past 24 hours but off earlier highs, while Ether (ETH) slipped slightly below $4,000, down 0.2% on the day [1] - XRP (XRP) and Chainlink (LINK) led gains in the CoinDesk 20 Index, with Zcash (ZEC) experiencing a notable 17% rally [1] Digital Asset Stocks - Most digital asset-related stocks were in the green, benefiting from the weekend relief rally, with Bitcoin miners Riot Platforms (RIOT) and MARA Holdings (MARA) jumping nearly 10% and 6%, respectively, while Galaxy Digital (GLXY) rose 5% [2] Market Sentiment - The Crypto Fear & Greed Index remains in deep "fear" territory, with some analysts predicting the end of the bull market and a more severe correction [3] - Arca argues that the recent crypto bounce is part of a broader reset rather than a collapse, emphasizing the importance of what happens next in the market [4] Structural Recovery Indicators - Arca analysts noted several signs of structural healing, including a 15% week-over-week increase in exchange volumes, a resurgence in open interest on decentralized perpetuals, and returning liquidity [5] - Easing macro pressures were highlighted, with stress in the U.S. regional banking sector fading, borrowing from the Fed's emergency liquidity facilities dropping to zero, and tightening high-yield credit spreads indicating calmer conditions [5] Market Outlook - Arca expressed confidence that the current rebound is not merely a temporary bounce, stating that the market has experienced similar situations before and that the current recovery is more substantial [6]