Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. The cryptocurrency's 13.6% increase in April positions it for its best monthly performance in a year, according to CoinGlass data, rebounding from a prolonged losing streak that lasted from October to February. The broader macroeconomic landscape has improved, with US equities, including the S&P 500 and Nasdaq, reaching record highs after a brief correction earlier in the year.
A significant factor contributing to the rebound is the substantial growth of Tether's USDT, the largest stablecoin, which has expanded by approximately $5 billion over the past two weeks to nearly $150 billion. This surge in stablecoin supply acts as a liquidity indicator for crypto markets, suggesting an influx of capital.
Analysts view stablecoin growth as a positive signal for asset prices. Despite ongoing geopolitical tensions and uncertainty surrounding the Iran war, which have elevated oil prices, markets appear to be looking beyond these concerns.
Jasper de Maere, an OTC trader at Wintermute, observed that equities and crypto markets seem to have become indifferent to intricate headlines about the conflict, possibly due to fatigue or complacency. Strong corporate earnings and resilient equity markets are offsetting concerns about higher energy costs and geopolitical risks. The upcoming Fed meeting in April will be a crucial test for the current rally.
If ETF inflows persist through this event, the $79,000 level could transition from resistance to support, paving the way for a higher trading range. Conversely, if inflows diminish, bitcoin may revert to the $75,000–$77,000 range.