Bitcoin is maintaining 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 poised for its strongest monthly performance in a year, according to CoinGlass data. This rebound comes after a challenging period, marked by the longest losing streak in crypto markets since 2018, with consecutive monthly declines from October to February.
The improvement in the broader macro landscape, including a strong recovery in U.S. equities, has contributed to this turnaround.
Additionally, the supply of Tether's USDT stablecoin has grown to nearly $150 billion, with a $5 billion increase over the past two weeks, which is seen as a positive signal for crypto market liquidity. Analysts view stablecoin growth as an indicator of capital flowing into the crypto market, which can lead to higher 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, driven by strong corporate earnings and resilient equity markets. De Maere notes that this trend may indicate a level of fatigue and complacency. The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential to determine whether bitcoin can break through the $79,000 level, which is seen as a significant structural barrier due to heavy institutional overhead supply.