Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week to its highest level since February. According to CoinGlass data, the cryptocurrency is poised for its best monthly performance in a year, with a 13.6% increase in April.
This rebound follows a challenging period for crypto markets, which experienced their longest losing streak since 2018, with consecutive monthly declines from October to February. The improvement in the broader macroeconomic landscape, including a strong recovery in US equities, has contributed to this turnaround.
The S&P 500 and Nasdaq have rebounded to record highs after briefly entering correction territory earlier in the year. A key driver of this move is the growth in 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 growth in stablecoins, which act as liquidity in crypto markets, is often seen as an indicator of capital flowing into the crypto market, a positive signal for asset prices.
Despite ongoing geopolitical tensions in the Middle East and uncertainty surrounding the Iran war, 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 are offsetting concerns about higher energy costs and geopolitical risks. De Maere noted that the equities and crypto markets seem to have become desensitized to intricate headlines on the conflict's direction, indicating a level of fatigue and potential complacency. Bitcoin is currently hovering near the top of its trading range, with the $79,000 level proving to be a significant cap as traders take profits.
The ability of bitcoin to break through this level will depend on the drivers of the move and the participants involved. A breakout supported by sustained institutional demand could mark a more durable shift, while a move driven primarily by short covering may fade once momentum cools. The upcoming April Fed meeting will be a crucial test for the current rally, and 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.