Bitcoin has maintained its position above $77,000, following a significant surge to its highest level since early February. With a 13.6% increase in April, it is poised for its best monthly performance in a year, according to CoinGlass data.
This rebound comes after a challenging period, marked by the longest losing streak in crypto markets 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 this turnaround. Additionally, the supply of Tether's USDT, the largest stablecoin, has grown to nearly $150 billion, with a $5 billion increase over the past two weeks, acting as a key driver of liquidity in crypto markets. Analysts view stablecoin growth as an indicator of capital inflow into the crypto market, which can have a positive impact on asset prices.
Meanwhile, geopolitical tensions in the Middle East and uncertainty surrounding the Iran war continue, but markets appear to be looking beyond these concerns for now. Strong corporate earnings and resilient equity markets are helping to offset worries 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 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 flows dissipate, bitcoin may retreat back into the $75,000-$77,000 range.