Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. The cryptocurrency's 13.6% increase in April positions it for its strongest monthly performance in a year, based on data from CoinGlass. This rebound follows a challenging period for crypto markets, which experienced their longest losing streak since 2018 from October to February.
The improvement in the broader macroeconomic landscape, including a strong recovery in US equities with the S&P 500 and Nasdaq reaching record highs, has contributed to the turnaround. Additionally, the supply of Tether's USDT, the largest stablecoin, has grown to nearly $150 billion, adding approximately $5 billion over the past two weeks.
This growth in stablecoins, which serve as liquidity in crypto markets, is often seen as an indicator of capital flowing into the crypto market, signaling a positive trend for asset prices. However, geopolitical tensions and uncertainty surrounding the Iran conflict continue to impact oil prices. According to Jasper de Maere, an OTC trader at Wintermute, markets appear to be dismissing these concerns for now, 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 institutional demand sustains the move, it could mark a more durable shift, while a breakout driven mainly by short covering may fade once momentum cools.