Bitcoin has maintained its position above $77,000, following a significant surge to its highest level since early February. This upward trend puts the cryptocurrency on track for a 13.6% increase in April, its best monthly performance in a year, according to data from CoinGlass.
The rebound occurs after a challenging period, during which crypto markets experienced their longest losing streak since 2018, with consecutive monthly declines from October to February. The improvement in the broader macroeconomic landscape, including a strong recovery in U.S. 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, adding approximately $5 billion over the past two weeks.
This growth in stablecoins, which act as liquidity in crypto markets, is often seen as an indicator of capital flowing into the crypto market, signaling a positive trend for asset prices. However, geopolitical uncertainties, particularly regarding 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, attributing this to fatigue and complacency. De Maere notes that strong corporate earnings and resilient equity markets are offsetting worries about higher energy costs and geopolitical risks. The upcoming April Fed meeting will be a crucial test for the current rally, with the potential to either sustain or halt the momentum.
Institutional demand and the persistence of ETF inflows will be key factors in determining whether bitcoin can break through the $79,000 level, which currently acts as a significant resistance point.