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 most significant monthly gain in a year, as per CoinGlass data.
This rebound occurs after a challenging period, marked by the longest losing streak in crypto markets since 2018, with consecutive monthly declines from October to February. The improvement in the broader macroeconomic landscape, including a strong recovery in U.S. 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 driver. This surge in stablecoin supply acts as a liquidity provider in crypto markets, indicating capital inflow and a positive signal for asset prices.
Analysts view stablecoin growth as a sign of capital flowing into the crypto market. Despite persistent geopolitical tensions and uncertainty surrounding the Iran war, which have kept 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 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.
If ETF inflows continue through this event, the $79,000 level could transition from resistance to support, potentially leading to a higher trading range. However, if flows diminish, bitcoin may revert to the $75,000–$77,000 range.