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 currently on track for a 13.6% increase in April, marking its best monthly performance in a year, based on data from CoinGlass. This turnaround follows a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018, from October to February.
The improvement in the broader macroeconomic landscape, including a strong recovery in U.S. equities, has contributed to this shift. The S&P 500 and Nasdaq have regained their record highs after briefly entering correction territory earlier in the year.
A significant factor driving this move is the growth of Tether's USDT, the largest stablecoin, which has increased its supply to nearly $150 billion, adding approximately $5 billion over the past two weeks. This surge in stablecoin supply is crucial, as it acts as liquidity in crypto markets, signaling capital flow into the crypto market and potentially driving up 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 overlooking 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 be sustained. If institutional demand continues to drive the move, bitcoin may break through the $79,000 level, which could become a support level, opening the door to a higher trading range.