Bitcoin has maintained its position above $77,000, following a strong surge earlier in the week to its highest level since February. The cryptocurrency is poised for its best monthly performance in a year, with a 13.6% increase in April, according to CoinGlass data.
This rebound comes after a challenging period, with crypto markets experiencing their longest losing streak since 2018, marked by consecutive monthly declines from October to February. The improvement in the broader macroeconomic landscape, including a strong recovery in US equities, has contributed to the turnaround.
The S&P 500 and Nasdaq have reached record highs after briefly entering correction territory earlier in the year. A significant factor driving the move is the growth of Tether's USDT, the largest stablecoin, which has increased by approximately $5 billion over the past two weeks to nearly $150 billion. This surge in stablecoin supply acts as a liquidity injection in crypto markets, indicating capital inflows and a positive signal for asset prices.
Despite persistent geopolitical tensions and uncertainty surrounding the Iran war, which have kept oil prices elevated, markets appear to be looking beyond these concerns. According to Jasper de Maere, an OTC trader at Wintermute, 'equities and crypto markets seem to have stopped caring about intricate headlines on the conflict's direction,' reflecting a level of fatigue and potential complacency.
Strong corporate earnings and resilient equity markets have helped offset concerns about higher energy costs and geopolitical risks. The next significant test for bitcoin will be the upcoming April Fed meeting, which may determine whether the current rally is sustained.
If institutional demand continues to drive the move, bitcoin may break through the $79,000 level, potentially leading to a higher trading range. However, if momentum cools, the cryptocurrency may slip back into the $75,000-$77,000 range.