Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. This upward trend puts the cryptocurrency on track for a 13.6% gain in April, potentially its best monthly performance in a year, according to data from CoinGlass.
The rebound follows a challenging period for crypto markets, which experienced their longest losing streak since 2018 from October to February. The improvement in the broader macroeconomic landscape, including a strong recovery in U.S. equities with the S&P 500 and Nasdaq reaching record highs, has contributed to this turnaround. Additionally, the supply of Tether's USDT, the largest stablecoin, has increased to nearly $150 billion, with a $5 billion growth over the past two weeks, acting as a significant driver for the crypto market.
This growth in stablecoins, which are tied to fiat currencies like the U.S. dollar and serve as liquidity in crypto markets, is often seen as an indicator of capital flowing into the crypto market, signaling a positive outlook for asset prices. Despite ongoing geopolitical tensions and uncertainty surrounding the Iran conflict, which have kept oil prices elevated, markets appear to be looking beyond these issues.
According to Jasper de Maere, an OTC trader at Wintermute, strong corporate earnings and the resilience of equity markets are offsetting concerns about higher energy costs and geopolitical risks, leading to a certain level of fatigue and complacency regarding intricate conflict headlines. The upcoming Fed meeting in April will be a crucial test for whether the current rally can be sustained, with the potential for ETF inflows to either support a breakout above $79,000 or lead to a decline back into the $75,000-$77,000 range.