Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week that brought it to its highest level since February. This uptrend has put the cryptocurrency on track for a 13.6% monthly gain, its best performance in a year, according to data from CoinGlass.
The rebound comes after a prolonged downturn in crypto markets, which had 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 with the S&P 500 and Nasdaq reaching record highs, has contributed to the 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, indicating a potential influx of capital into the crypto market. Analysts view stablecoin growth as a positive signal for asset prices, as stablecoins provide liquidity in crypto markets.
However, geopolitical tensions and uncertainty surrounding the Iran war continue to affect oil prices. Markets seem to be overlooking these concerns for now, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and geopolitical risks, according to Jasper de Maere, an OTC trader at Wintermute.
The upcoming Fed meeting in April will be a crucial test for the current rally, and the direction of bitcoin will depend on whether the move is driven by sustained institutional demand or short-term momentum.