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, according to data from CoinGlass.
This rebound comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018, marked by consecutive monthly declines 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, recovering to record highs after briefly entering correction territory earlier in the year. A significant factor driving this move is the substantial growth in the supply of Tether's USDT, the largest stablecoin, which has increased by approximately $5 billion over the past two weeks to nearly $150 billion.
As stablecoins serve as a source of liquidity in crypto markets, their growth is often seen as an indicator of capital flowing into the crypto market, which can have a positive impact on asset prices. Despite ongoing geopolitical tensions and uncertainty surrounding the Iran war, which have kept oil prices elevated, markets appear to be looking beyond these concerns. According to Jasper de Maere, an OTC trader at Wintermute, strong corporate earnings and resilient equity markets have offset concerns about higher energy costs and geopolitical risks, leading to a sense of fatigue and complacency in the markets. The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential to determine whether it will be sustained.
If institutional demand continues to drive the move, bitcoin may break through the $79,000 level, which could mark a significant shift in the market.