Bitcoin has maintained its position above $77,000, following a strong rebound earlier in the week that saw it reach its highest level since February. The cryptocurrency is poised for its best monthly performance in a year, with a 13.6% increase in April, according to CoinGlass data. This turnaround follows 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 the rebound.
Additionally, the supply of Tether's USDT stablecoin has surged to nearly $150 billion, with a $5 billion increase over the past two weeks, providing a significant boost to crypto market liquidity. Analysts view stablecoin growth as a positive indicator of capital flowing into the crypto market, which can drive up asset prices. However, geopolitical tensions and uncertainty surrounding the Iran war continue to impact oil prices. Jasper de Maere, an OTC trader at Wintermute, noted that 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 institutional demand persists, bitcoin may break through the $79,000 level, which could mark a significant shift in its trading range.