On Friday, the price of Bitcoin held steady above $77,000, following a significant surge earlier in the week to its highest level since early February. According to CoinGlass data, the cryptocurrency has seen a 13.6% increase in April, putting it on track for its best monthly performance in a year. This rebound comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018.
The recent turnaround can be attributed to an improved macroeconomic backdrop, with US equities recovering and the S&P 500 and Nasdaq reaching record highs. Additionally, the supply of Tether's USDT stablecoin has increased to nearly $150 billion, with a $5 billion growth over the past two weeks.
This surge in stablecoin supply is seen as a positive indicator for the crypto market, as it provides liquidity for traders to purchase digital assets. 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. According to Jasper de Maere, an OTC trader at Wintermute, the equities and crypto markets seem to have become desensitized to the conflict's intricacies.
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 move, a breakout above $79,000 could mark a significant shift in the market.