Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week to its highest level since February. With a 13.6% increase in April, it is poised for its strongest monthly performance in a year, according to data from CoinGlass. This rebound comes after a prolonged downturn in crypto markets, which experienced their longest losing streak since 2018 from October to February.
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 growth of Tether's USDT, the largest stablecoin, to nearly $150 billion, with an increase of about $5 billion over the past two weeks, is a significant crypto-specific driver.
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.
Markets seem to be looking beyond these concerns for now, 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. The upcoming April Fed meeting will be a crucial test for whether the current rally can be sustained, and the direction of ETF inflows will be closely watched.