Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week to its highest level since early 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 comes after 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 macro environment, including a strong recovery in U.S. equities with the S&P 500 and Nasdaq reaching record highs, has contributed to the turnaround.
Additionally, the supply of Tether's USDT, the largest stablecoin, has grown 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 a sign of capital flowing into the crypto market, potentially driving up asset prices. However, geopolitical tensions and uncertainty surrounding the Iran war continue to impact oil prices.
Despite this, markets appear to be looking beyond these concerns, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and geopolitical risks, according to Jasper de Maere, an OTC trader at Wintermute. De Maere noted that the equities and crypto markets seem to have become desensitized to intricate headlines about the conflict. The upcoming April Fed meeting will be a crucial test for the current rally, with the potential to determine whether it will hold.
If institutional demand sustains the move, a breakout above $79,000 could mark a more durable shift, according to Adam Haeems, head of asset management at Tesseract Group.