Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week, and is now poised for its strongest monthly performance in a year, with a 13.6% increase in April, according to CoinGlass data. This rebound comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018. The improvement in the broader macroeconomic landscape, including a strong recovery in US equities, has contributed to this turnaround.
Additionally, the growth of Tether's USDT, the largest stablecoin, has surged 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 flowing into the crypto market, which is a positive signal for asset prices. However, geopolitical tensions and uncertainty surrounding the Iran war continue to impact oil prices. Despite this, markets appear to be looking beyond these concerns, with one trader suggesting that strong corporate earnings and resilient equity markets are offsetting 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 for ETF inflows to determine whether the $79,000 level will become a support or resistance point for bitcoin.