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 track for a 13.6% increase in April, its best monthly performance in a year, based on data from CoinGlass. The rebound occurs after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018, from October to February. The improvement in the broader macroeconomic landscape, including a strong recovery in US 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 a $5 billion increase over the past two weeks, acting as a key driver of liquidity in crypto markets. Analysts view stablecoin growth as an indicator of capital flowing into the crypto market, which is a positive signal for asset prices. However, geopolitical uncertainty and elevated oil prices due to the Iran war persist. According to Jasper de Maere, an OTC trader at Wintermute, markets seem to be overlooking these concerns, focusing instead on strong corporate earnings and resilient equity markets.
De Maere notes that this trend may indicate a level of fatigue and complacency. The upcoming FOMC meeting will be a crucial test for bitcoin, which is currently hovering near the top of its trading range.
The ability to break through the $79,000 level will depend on the drivers of the move and the participation of institutional buyers. A sustained breakout backed by institutional demand could mark a more durable shift, while a move driven by short covering may fade once momentum cools.