Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. This upward trend places the cryptocurrency on track for a 13.6% increase in April, marking its most significant monthly gain in a year, based on data from CoinGlass.
The recent rebound reverses a prolonged downturn that saw crypto markets experience 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 an increase of approximately $5 billion over the past two weeks, is a significant driver.
This expansion in stablecoin supply acts as a liquidity injection into crypto markets, signaling potential capital inflows and supporting asset prices. However, geopolitical tensions and uncertainty surrounding the Iran war continue to impact oil prices. According to Jasper de Maere, an OTC trader at Wintermute, markets appear to be disregarding these concerns, focusing instead on strong corporate earnings and resilient equity markets.
The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential for institutional demand to drive a more sustainable shift in bitcoin's price.