Bitcoin has maintained its position above $77,000, following a significant surge to its highest level since early February. This month, the cryptocurrency has seen a 13.6% increase, putting it on track for its most substantial monthly gain in a year, according to data from CoinGlass. The rebound comes after a challenging period, with crypto markets experiencing their longest losing streak since 2018, including consecutive monthly declines from October to February. The improvement in the broader macroeconomic landscape has contributed to this turnaround, with U.S.
equities recovering and the S&P 500 and Nasdaq reaching record highs after briefly entering correction territory earlier in the year. A key driver of this move is the growth in the supply of Tether's USDT, the largest stablecoin, which has increased to nearly $150 billion, adding around $5 billion over the past two weeks after months of stagnation.
This growth in stablecoins, which are tied to fiat currencies like the U.S. dollar and act as liquidity in crypto markets, is often seen as a sign of capital flowing into the crypto market, which can have a positive impact on 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 intricate headlines about the conflict, indicating a level of fatigue and potential complacency. De Maere notes that strong corporate earnings and resilient equity markets are helping to offset 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 be sustained.
If ETF inflows continue through this event, the $79,000 level could transition from resistance to support, opening the door for a higher trading range. However, if flows fade, bitcoin may slip back into the $75,000-$77,000 range.