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, marking its best monthly performance in a year, as per CoinGlass data.
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 an increase of about $5 billion over the past two weeks, indicating a potential influx of capital into the crypto market.
Analysts view stablecoin growth as a positive signal for asset prices, as it provides liquidity for traders to purchase digital assets. However, geopolitical uncertainties, such as the Iran war, continue to impact oil prices.
According to Jasper de Maere, an OTC trader at Wintermute, markets seem to be disregarding these concerns, potentially due to fatigue and complacency, as strong corporate earnings and resilient equity markets offset higher energy costs and geopolitical risks. The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential for institutional demand to drive a more durable shift in bitcoin's price.