Bitcoin is holding steady above $77,000, following its strongest performance since early February. The cryptocurrency has seen a 13.6% increase in April, positioning it for its best monthly performance in a year, according to CoinGlass data.
This rebound comes after a challenging period, with crypto markets experiencing their longest losing streak since 2018, with consecutive monthly declines from October to February. The improvement in the broader macro environment, including a strong recovery in US equities, has contributed to the turnaround.
The S&P 500 and Nasdaq have regained record highs after briefly entering correction territory earlier in the year. A significant factor in the crypto market's resurgence is the surge in Tether's USDT, the largest stablecoin, which has grown by approximately $5 billion over the past two weeks to nearly $150 billion.
Stablecoins, being tied to fiat currencies like the US dollar, serve as liquidity in crypto markets, indicating capital flow into the crypto market and a positive signal for asset prices. Despite ongoing geopolitical tensions in the Middle East and uncertainty surrounding the Iran war, which have kept oil prices elevated, markets seem to be looking beyond these concerns.
According to Jasper de Maere, an OTC trader at Wintermute, strong corporate earnings and resilient equity markets are offsetting concerns about higher energy costs and geopolitical risks. De Maere noted that markets appear to have become desensitized to intricate headlines about the conflict. The next significant test for bitcoin will be the April Fed meeting, which may determine whether the current rally is sustainable.
If institutional demand continues to drive the move, bitcoin may break through the $79,000 level, potentially leading to a higher trading range.