Bitcoin has maintained its position above $77,000, following a notable surge earlier in the week that saw it reach its highest level since early February. The cryptocurrency's 13.6% gain in April puts it on track for its best monthly performance in a year, as per CoinGlass data, marking a significant turnaround from the consecutive monthly declines it experienced from October to February. The improvement in the broader macro environment, including a strong recovery in U.S. equities, has contributed to this rebound.
Additionally, the supply of Tether's USDT, the largest stablecoin, has increased by approximately $5 billion over the past two weeks, reaching nearly $150 billion. This growth in stablecoin supply is often seen as an indicator of increased liquidity in crypto markets, which can be a positive signal for asset prices.
However, geopolitical risks and uncertainty surrounding the Iran war persist, keeping oil prices elevated. According to Jasper de Maere, an OTC trader at Wintermute, markets seem to have become less concerned about the conflict, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs.
The upcoming Fed meeting in April will be a crucial test for bitcoin, as it may determine whether the current rally is sustainable. If institutional demand continues to drive the price increase, bitcoin may break through the $79,000 level, which could potentially become a support level, paving the way for a higher trading range.