Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. The cryptocurrency's 13.6% increase in April positions it for its strongest monthly performance in a year, according to CoinGlass data, rebounding from a prolonged downturn that saw 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 this turnaround.
Additionally, the growth of Tether's USDT, the largest stablecoin, to nearly $150 billion, with a $5 billion increase over the past two weeks, is a significant crypto-specific factor. This expansion of stablecoin supply acts as a liquidity injection into crypto markets, often interpreted as a sign of capital flowing into the crypto market, which can positively impact asset prices.
However, the persistence of geopolitical uncertainties, such as the Iran war, continues to influence oil prices. Jasper de Maere, an OTC trader at Wintermute, observed that markets seem to be disregarding intricate details about the conflict, possibly due to fatigue or complacency, as strong corporate earnings and resilient equity markets offset concerns about higher energy costs and geopolitical risks.
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 determine if bitcoin can break through the $79,000 resistance level, which could mark a significant shift in its trading range.