Bitcoin has maintained its position above $77,000, following a significant surge to its highest level since early February. With a 13.6% increase in April, the cryptocurrency is poised for its best monthly performance in a year, as per CoinGlass data. This rebound comes after a challenging period, marked by the longest losing streak in crypto markets since 2018, with consecutive monthly declines from October to February.
The improvement in the broader macro backdrop, including a strong recovery in U.S. equities, has contributed to this turnaround. The S&P 500 and Nasdaq have regained their record highs after briefly entering correction territory earlier in the year. A key driver of this move is the growth in Tether's USDT, the largest stablecoin, which has increased its supply to nearly $150 billion, adding approximately $5 billion over the past two weeks.
This surge 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. Despite persistent 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, strong corporate earnings and resilient equity markets have helped offset concerns about higher energy costs and geopolitical risks, leading to a sense of fatigue and complacency in the markets. The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential to determine whether it will hold or fade.
If institutional demand sustains, bitcoin may break through the $79,000 level, which could mark a more durable shift and open the door to a higher trading range.