Bitcoin has maintained its position above $77,000, following a significant surge to its highest level since early February, with the cryptocurrency experiencing a 13.6% increase in April, poised for its best monthly performance in a year, based on data from CoinGlass. This rebound occurs after a challenging period, marked by the longest losing streak in crypto markets 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 grown to nearly $150 billion, with a $5 billion increase 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 can lead to healthier asset prices.
However, geopolitical tensions and uncertainty surrounding the Iran conflict persist, although 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 Fed meeting in April will be a crucial test for the current rally, with the potential for ETF inflows to determine whether the $79,000 level will become a support or resistance point for bitcoin.