Bitcoin has maintained its position above $77,000, following its strongest performance since early February, with a 13.6% increase in April, putting it on track for its best monthly performance in a year, according to CoinGlass data, after a period of consecutive monthly declines from October to February. The improvement in the macroeconomic backdrop, including a strong recovery in US equities with the S&P 500 and Nasdaq reaching record highs, has contributed to the turnaround. Additionally, the supply of Tether's USDT has surged to nearly $150 billion, with a $5 billion increase over the past two weeks, acting as a liquidity driver in crypto markets. Analysts view stablecoin growth as an indicator of capital flowing into the crypto market, which is a positive signal for asset prices.
However, geopolitical tensions and uncertainty surrounding the Iran war persist, keeping oil prices elevated. Markets seem to be looking past these concerns for now, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and geopolitical risks.
The upcoming Fed meeting in April will be a key test for the current rally, with the potential for ETF inflows to determine whether the $79,000 level will become a support or resistance point for bitcoin.