Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February, with the cryptocurrency poised for a 13.6% gain in April, marking its best monthly performance in a year. This rebound follows a prolonged downturn, with crypto markets experiencing their longest losing streak since 2018, from October to February.
The improvement in the broader macro environment, including a strong recovery in US equities, has contributed to the turnaround. Furthermore, the supply of Tether's USDT stablecoin has increased to nearly $150 billion, adding approximately $5 billion over the past two weeks, indicating a potential influx of capital into the crypto market. According to analysts, the growth of stablecoins, which are tied to fiat currencies like the US dollar, can be seen as a sign of increasing liquidity in crypto markets. Despite ongoing geopolitical tensions and uncertainty surrounding the Iran war, markets seem 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 April Fed meeting is expected to 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.