Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. The cryptocurrency's 13.6% increase in April puts it on track for its most impressive monthly performance in a year, according to CoinGlass data.
This rebound follows 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 macro landscape, including a strong recovery in US equities, has contributed to this turnaround. Additionally, the supply of Tether's USDT stablecoin has grown to nearly $150 billion, with a $5 billion increase over the past two weeks, providing a crypto-specific driver for the move. As stablecoins act as liquidity in crypto markets, their growth is often seen as a sign of capital flowing into the crypto market, which can be a positive indicator for asset prices.
Despite ongoing geopolitical tensions and uncertainty surrounding the Iran war, 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 April Fed meeting will be a key test for the current rally, with the potential to determine whether it will be sustained.
If ETF inflows continue through this event, the $79,000 level could transition from resistance to support, paving the way for a higher trading range. Conversely, if flows fade, bitcoin may revert to the $75,000–$77,000 range.