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, marking its best monthly performance in a year, according to data from CoinGlass. The rebound occurs after a challenging period, during which crypto markets experienced their longest losing streak since 2018, with consecutive monthly declines from October to February. The improvement in the broader macroeconomic landscape, including a strong recovery in US equities, 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 key driver of liquidity in crypto markets. Analysts view stablecoin growth as an indicator of capital flowing into the crypto market, which can have a positive impact on asset prices. However, geopolitical tensions and uncertainty surrounding the Iran conflict persist, keeping oil prices elevated. Despite these concerns, markets appear to be shifting their focus away from the conflict, with strong corporate earnings and resilient equity markets helping to offset worries about higher energy costs and geopolitical risks.
The upcoming Fed meeting in April will be a crucial test for the current rally, and the continuation of ETF inflows will be key to determining whether the $79,000 level will become a support or resistance point for bitcoin.