On Friday, Bitcoin maintained its position above $77,000, having reached its highest level since early February earlier in the week. It has gained around 13.6% in April, putting it on track for its best monthly performance in a year, according to data from CoinGlass. This rebound follows a difficult period, during which crypto markets experienced their longest losing streak since 2018, with consecutive monthly declines from October to February. The improvement in the broader macroeconomic backdrop has contributed to this turnaround, with U.S.
equities recovering strongly and the S&P 500 and Nasdaq reaching record highs after briefly entering correction territory earlier in the year. However, a crypto-specific factor is also driving this move. The supply of Tether's USDT, the largest and most popular stablecoin, has surged to nearly $150 billion, adding approximately $5 billion over the past two weeks after months of stagnation.
This growth matters because stablecoins, which are tied to fiat currencies like the U.S. dollar, act as liquidity in crypto markets, providing the capital traders use to buy digital assets in the blockchain economy. Analysts often view stablecoin growth as an indication of capital flowing into the crypto market, which is a positive signal for asset prices.
Despite ongoing geopolitical tensions in the Middle East and uncertainty surrounding the Iran war, which have kept oil prices elevated, markets seem to be looking past these concerns for now. According to Jasper de Maere, an OTC trader at Wintermute, the equities and crypto markets appear to have become desensitized to detailed headlines about the conflict's direction, indicating a certain level of fatigue and potentially complacency. De Maere noted that strong corporate earnings and resilient equity markets are helping to offset concerns about higher energy costs and geopolitical risks.
With bitcoin hovering near the top of its trading range, the $79,000 level has proven to be a significant cap, with traders taking profits. This level is structurally important due to the heavy institutional overhead supply just above it, according to Adam Haeems, head of asset management at Tesseract Group.
Whether bitcoin can break through this level will depend on the drivers of the move and the participants involved. Moves driven primarily by short covering tend to fade once momentum cools, while a breakout backed by sustained institutional demand can mark a more durable shift, Haeems said. The next test will come soon with the April Fed meeting, which could determine whether the current rally holds.
If ETF inflows continue through this event, Haeems said, $79,000 could turn from resistance into support, opening the door for a higher trading range. If flows fade, bitcoin may slip back into the $75,000–$77,000 range.