Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. The cryptocurrency is poised for a 13.6% gain in April, marking its best monthly performance in a year, according to CoinGlass data. This rebound comes after a challenging period, with crypto markets experiencing their longest losing streak since 2018, including consecutive monthly declines from October to February. The improvement in the broader macroeconomic landscape, including a strong recovery in US equities, has contributed to this turnaround.
Additionally, the supply of Tether's USDT, the largest stablecoin, has increased to nearly $150 billion, with a $5 billion growth over the past two weeks, providing a crypto-specific driver for the move. This growth in stablecoins, which act as liquidity in crypto markets, is often seen as a sign of capital flowing into the crypto market, which can have a positive impact on asset prices. However, geopolitical tensions and uncertainty surrounding the Iran war continue to affect oil prices. According to Jasper de Maere, an OTC trader at Wintermute, markets seem to be looking past these concerns, 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 crucial test for the current rally, with the potential to determine whether it will hold or fade. If ETF inflows continue through this event, the $79,000 level could shift from resistance to support, paving the way for a higher trading range, but if flows diminish, bitcoin may revert to the $75,000-$77,000 range.