Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. With a 13.6% increase in April, the cryptocurrency is poised for its strongest monthly performance in a year, according to data from CoinGlass.
This rebound follows a prolonged period of decline in the crypto market, which had experienced its longest losing streak since 2018. The turnaround can be attributed to an improvement in the broader macroeconomic landscape, with the S&P 500 and Nasdaq reaching record highs after a brief correction earlier in the year.
A significant factor contributing to this move is the growth of Tether's USDT, the largest stablecoin, which has increased its supply to nearly $150 billion, adding approximately $5 billion over the past two weeks. This expansion of stablecoin supply is seen as a positive indicator for the crypto market, as it signifies an influx of capital. However, geopolitical tensions and uncertainty surrounding the Iran war continue to impact oil prices. According to Jasper de Maere, an OTC trader at Wintermute, markets appear to have become indifferent to the conflict, with strong corporate earnings and resilient equity markets offsetting concerns about higher energy costs and geopolitical risks.
The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential to determine whether it will be sustained. If institutional demand continues, the $79,000 level could transition from resistance to support, paving the way for a higher trading range.