Crypto bears retreat as BTC holds, LSK, ARB, NEAR and ZEC lead altcoin bounce

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Altcoin holders are having a great day Friday as a market-wide bounce has seen major tokens print green over the last 24 hours. Bitcoin also reclaimed $78,000, as the leading crypto brushed off the letdown from the CLARITY Act stalling and the Federal Reserve’s rate hike.

BTC’s return above the $78,000 level capped three straight days of gains, with most of the other tokens in the top 100 by market cap also trading in the green over the last 24 hours. The market capitalization of the total crypto sector climbed 2.55% to roughly $2.68 trillion, per CoinMarketCap. 

Which crypto tokens are making gains? 

Some of the standout performers over the last 24 hours include Starknet (STRK), Arbitrum (ARB), Uniswap (UNI), Hyperliquid (HYPE), Zcash (ZEC), Solana (SOL) and NEAR.

Over the one-week period, the highest weekly gainers tracked by CoinMarketCap were Lisk (LSK), Arbitrum, GEODNET, NEAR, Zcash and Uniswap.

Top crypto gainers for the week. Source: CoinMarketCap 

As Cryptopolitan reported earlier in the day, Arbitrum’s ARB has been on a 167% run over the past month, riding high on tokenized real-world asset inflows momentum. ZEC, on the other hand, pushed toward the $1,500 level after setting up its latest climb with a September 17 short squeeze that wiped out $56.35 million in bearish bets.

The derivatives activity has backed up the spot price move, with cumulative open interest rising by almost 5% to $141.2 billion. 

Why the bears are backing off

This rally has come despite serious macro headwinds from the CLARITY Act failing to gather the votes it needs to pass through Congress on Tuesday, which sent Bitcoin into a tailspin below $75,000. 

The Fed and the Bank of Japan piled on as the former delivered its first rate hike in more than three years, while the BOJ set its benchmark at its highest level in 31 years. 

Dr Add the historical context that September is Bitcoin’s weakest month, BTC holding steady at -1.5% on the month and up about 32% for the quarter, is a major win.

The analyst consensus now is that sellers are exhausted and the metaphoric bottom is already in. 

The buying column gained a prominent returning participant, as Kevin O’Leary told The Block at the Avalanche Summit that he is “back in the saddle buying new positions” for the next cycle, while cautioning that he does not expect the CLARITY Act to pass before the midterms.

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