Bitcoin has maintained 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 data from CoinGlass. This rebound comes after a challenging period for crypto markets, which 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 US 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, with a $5 billion growth over the past two weeks, acting as a significant driver of liquidity in crypto markets.
Analysts view stablecoin growth as an indicator of capital flowing into the crypto market, which is a positive signal for asset prices. However, geopolitical uncertainties and the Iran war continue to impact oil prices. Markets seem to be looking beyond these concerns for now, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and geopolitical risks, according to Jasper de Maere, an OTC trader at Wintermute. The upcoming April Fed meeting will be a crucial test for whether the current rally can be sustained, with institutional demand playing a key role in determining the durability of the shift in bitcoin's price.