Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. This upward trend has placed the cryptocurrency on track for its most significant monthly gain in a year, with a 13.6% increase in April, according to data from CoinGlass. The rebound comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018, marked by consecutive monthly drops 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 an increase of approximately $5 billion over the past two weeks, is seen as a key driver of this move.
The expansion of stablecoins, which act as liquidity in crypto markets, is often viewed as an indicator of capital flowing into the crypto market, signaling a positive trend for asset prices. However, geopolitical tensions and uncertainty surrounding the Iran conflict continue to impact oil prices.
According to Jasper de Maere, an OTC trader at Wintermute, markets seem to be overlooking these geopolitical risks, with strong corporate earnings and resilient equity markets offsetting concerns about higher energy costs. 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 level, which has proven to be a significant resistance point, and potentially enter a higher trading range.