Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week to its highest level since February. This upward trend puts the cryptocurrency on track for its most substantial monthly gain in a year, with a 13.6% increase in April, according to CoinGlass data.
The rebound follows a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018, marked by consecutive monthly declines from October to February. The improvement in the broader macroeconomic landscape, including a strong recovery in U.S.
equities with the S&P 500 and Nasdaq reaching record highs, has contributed to this turnaround. Additionally, the supply of Tether's USDT, the largest stablecoin, has seen a notable increase to nearly $150 billion, adding approximately $5 billion over the past two weeks after a period of stagnation. This growth in stablecoin supply is significant as it acts as liquidity in crypto markets, indicating capital flow into the crypto market and a positive signal for asset prices.
However, geopolitical uncertainties, particularly regarding the Iran conflict, continue to affect oil prices. According to Jasper de Maere, an OTC trader at Wintermute, markets seem to be overlooking these geopolitical risks, with strong corporate earnings and resilient equity markets offsetting concerns about higher energy costs. De Maere notes that this could be a sign of market fatigue and complacency.
The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential to determine whether the surge in bitcoin can be sustained. If institutional demand continues to drive the move, breaking through the $79,000 level could mark a significant shift, potentially opening the door to a higher trading range.