Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. With a 13.6% increase in April, the cryptocurrency is poised for its strongest monthly performance in a year, as per CoinGlass data. This rebound occurs after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018, marked by consecutive monthly drops from October to February.
The improvement in the broader macroeconomic landscape has contributed to this turnaround, with US equities, including the S&P 500 and Nasdaq, rebounding to record highs after briefly entering correction territory. A key driver of this move is the significant growth in Tether's USDT, the largest stablecoin, which has expanded by approximately $5 billion over the past two weeks to nearly $150 billion. This surge in stablecoin supply is crucial, as it acts as liquidity in crypto markets, signaling capital inflows and a positive indicator for asset prices.
Although geopolitical tensions and uncertainty surrounding the Iran conflict persist, keeping oil prices elevated, markets seem to be looking beyond these concerns. According to Jasper de Maere, an OTC trader at Wintermute, strong corporate earnings and resilient equity markets are offsetting concerns about higher energy costs and geopolitical risks. De Maere noted that the equities and crypto markets appear to have become desensitized to intricate headlines about the conflict.
The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential to determine whether it holds or fades. If institutional demand persists, bitcoin may break through the $79,000 resistance level, potentially leading to a higher trading range.