Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. This upward trend puts the cryptocurrency on track for a 13.6% increase in April, marking its best monthly performance in a year, according to data from CoinGlass. The rebound occurs after a challenging period, during which crypto markets experienced their longest losing streak 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 growth of Tether's USDT, the largest stablecoin, to nearly $150 billion, with a $5 billion increase over the past two weeks, has played a significant role. This expansion of stablecoin supply acts as a liquidity injection into crypto markets, often interpreted as a signal of capital flowing into the crypto market, which is beneficial for asset prices.
However, geopolitical uncertainties, such as the situation in the Middle East and the Iran war, continue to affect oil prices. Despite these concerns, markets appear to be looking beyond them, as indicated by Jasper de Maere, an OTC trader at Wintermute, who suggests that strong corporate earnings and resilient equity markets are offsetting worries about higher energy costs and geopolitical risks.
The upcoming Fed meeting in April will be a crucial test for whether the current rally can be sustained. According to Adam Haeems, head of asset management at Tesseract Group, the ability of bitcoin to break through the $79,000 level will depend on the drivers of the move and the participants involved. A breakout supported by sustained institutional demand could mark a more durable shift, whereas moves driven mainly by short covering tend to fade once momentum cools.