Bitcoin has maintained its position above $77,000, following a significant 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, as per CoinGlass data. The recovery comes after a prolonged period of decline, with the crypto market experiencing its longest losing streak since 2018, from October to February. The broader economic landscape has improved, with US equities, including the S&P 500 and Nasdaq, reaching record highs after briefly entering correction territory.
A key factor driving this growth is the substantial increase in Tether's USDT stablecoin supply, which has grown by approximately $5 billion over the past two weeks to nearly $150 billion. This expansion is significant because stablecoins serve as a liquidity source in crypto markets, indicating an influx of capital. Analysts view stablecoin growth as a positive signal for asset prices.
Despite persisting geopolitical uncertainties, including the Iran conflict, markets appear to be shifting focus away from these concerns. According to Jasper de Maere, an OTC trader at Wintermute, strong corporate earnings and resilient equity markets are offsetting worries about higher energy costs and geopolitical risks. The upcoming Fed meeting in April will be a crucial test for bitcoin's ability to break through the $79,000 resistance level, which is structurally significant due to the presence of heavy institutional supply above it.