Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. With a 13.6% increase in April, the cryptocurrency is on track for its most impressive monthly performance in a year, as per CoinGlass data. This rebound follows a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018, marked by consecutive monthly drops from October to February.
The turnaround can be attributed to an improved macroeconomic backdrop, with U.S. equities recovering and the S&P 500 and Nasdaq reaching record highs after briefly entering correction territory. The growth of Tether's USDT, the largest stablecoin, has also played a significant role, with its supply increasing to nearly $150 billion and adding approximately $5 billion over the past two weeks.
This surge in stablecoin supply is seen as a positive indicator, as it acts as liquidity in crypto markets, signaling capital inflows into the crypto market. Despite lingering 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. De Maere noted that the equities and crypto markets seem to have become desensitized to intricate headlines regarding the conflict.
The next major test for bitcoin will be the upcoming April Fed meeting, which may determine whether the current rally is sustained. If institutional demand continues to drive the move, a breakout above $79,000 could mark a more durable shift, according to Adam Haeems, head of asset management at Tesseract Group.