Bitcoin has maintained its position above $77,000, following a significant surge to its highest level since early February. The cryptocurrency's value has increased by approximately 13.6% in April, placing it on track for its most substantial monthly gain in a year, according to data from CoinGlass.
This rebound occurs after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018, marked by consecutive monthly decreases from October to February. The improvement in the broader macroeconomic landscape has contributed to this turnaround, with US equities recovering and the S&P 500 and Nasdaq reaching record highs after briefly entering correction territory earlier in the year. A key driver of this move is the growth of Tether's USDT, the largest stablecoin, which has expanded its supply to nearly $150 billion, adding around $5 billion over the past two weeks after a period of stagnation. The increase in stablecoin supply is significant, as it provides liquidity to crypto markets and serves as an indicator of capital flowing into the crypto market, which is a positive signal for asset prices.
Despite ongoing geopolitical tensions and uncertainty surrounding the Iran war, which have kept oil prices elevated, markets appear to be looking beyond these concerns. According to Jasper de Maere, an OTC trader at Wintermute, the equities and crypto markets seem to have become indifferent to the intricate details of the conflict, which may indicate a level of fatigue and complacency. De Maere notes that strong corporate earnings and resilient equity markets are helping to offset concerns about higher energy costs and geopolitical risks. The next significant test for bitcoin will be the April Fed meeting, which could determine whether the current rally is sustained.
If institutional demand continues to drive the move, bitcoin may break through the $79,000 level, which could mark a more durable shift, according to Adam Haeems, head of asset management at Tesseract Group.