Bitcoin has maintained its position above $77,000, following a notable surge earlier in the week to its highest level since early February, now up approximately 13.6% in April. This rebound marks a significant turnaround after a prolonged losing streak in crypto markets, which had been experiencing consecutive monthly declines since October. The improvement in the broader macroeconomic landscape, including a strong recovery in US equities with the S&P 500 and Nasdaq reaching record highs, has contributed to this shift.
Additionally, the growth of Tether's USDT, the largest stablecoin, to nearly $150 billion, with an increase of about $5 billion over the past two weeks, is seen as a key driver. This expansion of stablecoins, which act as liquidity in crypto markets, is often interpreted as a signal of capital flowing into the crypto market, potentially supporting asset prices.
However, geopolitical uncertainty, particularly concerning the Iran war, continues to affect oil prices. Markets appear to be disregarding these geopolitical risks for now, with a trader at Wintermute noting that both equities and crypto markets seem to have become desensitized to detailed headlines about the conflict.
The upcoming Fed meeting in April will be a crucial test for whether the current rally can be sustained, with institutional demand playing a significant role in determining the durability of the shift in bitcoin's price.