Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since February. This uptrend has positioned the cryptocurrency for its strongest monthly performance in a year, with a 13.6% increase in April, according to CoinGlass data. The rebound marks a significant turnaround from the prolonged downturn that lasted from October to February. The improvement in the broader macroeconomic landscape, including the recovery of US equities, has contributed to this shift.
Additionally, the supply of Tether's USDT stablecoin has grown by approximately $5 billion over the past two weeks, reaching nearly $150 billion. This expansion is seen as a key driver of the crypto market's liquidity and a positive indicator for asset prices.
Analysts view the growth of stablecoins as a sign of increased capital flow into the crypto market. Despite persistent geopolitical tensions and uncertainty surrounding the Iran conflict, markets seem to be shifting their focus away from these concerns.
According to Jasper de Maere, an OTC trader at Wintermute, strong corporate earnings and the resilience of equity markets have offset worries about higher energy costs and geopolitical risks. De Maere noted that the equities and crypto markets appear to have become less responsive to intricate headlines about the conflict.
The upcoming April Fed meeting is expected to be a crucial test for the current rally. If institutional demand continues to drive the momentum, bitcoin may break through the $79,000 level, potentially leading to a higher trading range. However, if the demand fades, the cryptocurrency may revert to the $75,000-$77,000 range.