Bitcoin has maintained its position above $77,000, following a notable surge earlier in the week to its highest level since February. According to CoinGlass data, the cryptocurrency is poised for its best monthly performance in a year, with a 13.6% increase in April.
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, to nearly $150 billion, with an increase of approximately $5 billion over the past two weeks, is a significant driver of this trend. Stablecoins play a crucial role in providing liquidity to crypto markets, and their growth is often seen as an indicator of capital flowing into the market.
However, geopolitical tensions and uncertainty surrounding the Iran war persist, keeping oil prices elevated. Despite this, markets appear to be looking beyond these concerns, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and geopolitical risks. The upcoming Federal Reserve meeting in April will be a crucial test for the current rally, and the continuation of ETF inflows will be key to determining whether the $79,000 level becomes a support or resistance point for bitcoin.