Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. The cryptocurrency's 13.6% gain in April puts it on track for its strongest monthly performance in a year, according to data from CoinGlass.
This rebound comes after a prolonged downturn, with crypto markets experiencing their longest losing streak since 2018, marked by consecutive monthly declines from October to February. The recent turnaround is attributed to an improved macroeconomic backdrop, with US equities, including the S&P 500 and Nasdaq, reaching record highs after a brief correction earlier in the year. Additionally, the growth of Tether's USDT stablecoin, with its supply increasing to nearly $150 billion and adding approximately $5 billion over the past two weeks, is seen as a key driver. This expansion of stablecoin supply is viewed as an indicator of increased liquidity in crypto markets, which can be a positive signal for asset prices.
Despite ongoing geopolitical tensions and uncertainty surrounding the Iran conflict, markets appear to be looking beyond these concerns, with strong corporate earnings and resilient equity markets helping to offset worries about higher energy costs and geopolitical risks. The upcoming Federal Reserve meeting in April will be a crucial test for the current rally, with the potential for exchange-traded fund (ETF) inflows to either support or undermine the $79,000 resistance level, which could determine whether bitcoin breaks through to a higher trading range or falls back to the $75,000-$77,000 range.