The price of Bitcoin has held steady above $77,000, following a significant surge earlier in the week to its highest level since February. This uptrend puts Bitcoin on track for a 13.6% gain in April, its best monthly performance in a year, according to data from CoinGlass. The rebound follows a prolonged downturn in crypto markets, which had experienced their longest losing streak since 2018. The recent turnaround is attributed to an improved macroeconomic backdrop, with US equities, including the S&P 500 and Nasdaq, reaching record highs after a brief correction earlier in the year.
Additionally, the supply of Tether's USDT stablecoin has increased by approximately $5 billion over the past two weeks, reaching nearly $150 billion. This growth in stablecoin supply is seen as a positive indicator for crypto markets, as it acts as a source of liquidity for traders. Analysts view the expansion of stablecoins as a sign of capital flowing into the crypto market, which can drive up asset prices.
However, geopolitical tensions and uncertainty surrounding the Iran conflict continue to affect oil prices. According to Jasper de Maere, an OTC trader at Wintermute, markets seem to be disregarding the conflict, with strong corporate earnings and resilient equity markets offsetting concerns about higher energy costs and geopolitical risks. The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential to determine whether it will be sustained. If institutional demand continues to drive the move, Bitcoin may break through the $79,000 resistance level, potentially leading to a higher trading range.