Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week to its highest level since February. This upward trend puts the cryptocurrency on pace for its strongest monthly performance in a year, with a 13.6% increase in April, according to data from CoinGlass. The rebound comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018. 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 supply of Tether's USDT, the largest stablecoin, has grown to nearly $150 billion, with an increase of about $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, signaling a positive trend for asset prices. However, geopolitical tensions and uncertainty surrounding the Iran war continue to impact oil prices.
According to Jasper de Maere, an OTC trader at Wintermute, markets seem to be looking beyond these tensions, with strong corporate earnings and resilient equity markets offsetting concerns. The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential to determine whether it will hold or fade.
If institutional demand continues to drive the market, bitcoin may break through the $79,000 level, which could become a support level, paving the way for a higher trading range.