Bitcoin has maintained its position above $77,000, following a notable 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, its best monthly performance in a year, according to data from CoinGlass.
The rebound comes after a challenging period for crypto markets, which experienced their longest losing streak since 2018. 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 growth of Tether's USDT, the largest stablecoin, to nearly $150 billion, with an increase of about $5 billion over the past two weeks, has provided a crypto-specific driver for the move. This expansion of stablecoin supply acts as a liquidity indicator in crypto markets, signaling capital inflow and potentially supporting asset prices. However, geopolitical uncertainties, such as the Iran war, continue to affect oil prices. According to Jasper de Maere, an OTC trader at Wintermute, markets seem to be disregarding these geopolitical risks, focusing instead on strong corporate earnings and resilient equity markets.
De Maere suggests that this disregard may be a sign of market fatigue or complacency. The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential to either sustain or reverse the momentum. Institutional demand and the direction of the move will be key factors in determining whether bitcoin can break through the $79,000 level, which has proven to be a significant resistance point.