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 puts it on track for its best monthly performance in a year, according to data from CoinGlass. This rebound occurs after a prolonged period of decline in the crypto market, which experienced its longest losing streak since 2018 from October to February.
The improvement in the broader macroeconomic landscape, including a strong recovery in US equities, has contributed to the turnaround. The S&P 500 and Nasdaq have regained their record highs after briefly entering correction territory earlier in the year. A significant factor driving the move is the growth of Tether's USDT, the largest stablecoin, which has increased its supply to nearly $150 billion, adding approximately $5 billion over the past two weeks.
This surge in stablecoin supply acts as a liquidity indicator in crypto markets, signaling capital inflows and potentially driving asset prices upward. Despite ongoing geopolitical tensions and uncertainty surrounding the Iran war, which have kept oil prices elevated, markets appear to be looking past these concerns. Jasper de Maere, an OTC trader at Wintermute, noted that strong corporate earnings and resilient equity markets are offsetting concerns about higher energy costs and geopolitical risks. The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential to determine whether it will hold or fade.
If institutional demand continues to drive the move, bitcoin may break through the $79,000 level, potentially marking a more durable shift in the market.