Bitcoin has maintained its position above $77,000, following a notable surge earlier in the week to its highest level since February. This upward trend puts the cryptocurrency on track for a 13.6% increase in April, its best monthly performance in a year, according to data from CoinGlass.
The rebound comes after a challenging period for crypto markets, which experienced their longest losing streak since 2018, with consecutive monthly declines from October to February. The broader macro environment has shown improvement, with U.S. equities, including the S&P 500 and Nasdaq, recovering to record highs after briefly entering correction territory. A significant factor contributing to the crypto market's turnaround is the substantial growth in Tether's USDT, the largest stablecoin, which has expanded its supply to nearly $150 billion, adding approximately $5 billion over the past two weeks.
This increase in stablecoin supply is crucial as it acts as liquidity in crypto markets, signaling potential capital inflows to the crypto market and a positive indicator for asset prices. However, geopolitical risks, such as the Iran war, continue to pose uncertainty, keeping oil prices elevated. According to Jasper de Maere, an OTC trader at Wintermute, markets seem to be looking past these geopolitical concerns for now, driven by strong corporate earnings and resilient equity markets.
The upcoming Fed meeting in April will be a critical test for whether the current rally can be sustained. If institutional demand continues, bitcoin may break through the $79,000 resistance level, potentially marking a durable shift in its trading range.