Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week to its highest level since February. This upward trend puts the cryptocurrency on track for a 13.6% gain in April, its best monthly performance in a year, according to data from CoinGlass. The 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 with the S&P 500 and Nasdaq reaching record highs, 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, acting as a significant driver of liquidity in crypto markets. Analysts view stablecoin growth as an indicator of capital flowing into the crypto market, which is a positive signal for asset prices. Despite ongoing 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 are offsetting concerns about higher energy costs and geopolitical risks, leading to a level of fatigue and complacency in the markets. 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 continues, breaking through the $79,000 level could mark a significant and durable shift, opening the door for a higher trading range.