On Friday, Bitcoin held above $77,000 following its recent peak since early February earlier that week. According to CoinGlass data, the largest cryptocurrency has risen roughly 13.6% in April, setting the stage for its best monthly performance in over a year.
This rebound follows a prolonged period of losses, marking crypto markets’ longest downturn since 2018 with consecutive declines from October through February. The broader macroeconomic environment has also improved, as U.S. equities have bounced back to record highs after briefly entering correction territory this year.
A significant factor driving Bitcoin’s recovery is the notable increase in Tether’s USDT supply, the most widely used stablecoin. Its supply recently surged to nearly $150 billion, adding about $5 billion over two weeks following a period of stagnation. This growth is crucial as stablecoins provide liquidity by serving as a medium for traders to purchase digital assets within blockchain markets. The expansion in stablecoin supply often signals an influx of capital into the crypto market, positively influencing asset prices.
Despite these positive signs, geopolitical tensions in the Middle East and uncertainties surrounding the Iran conflict continue to elevate oil prices. However, markets appear to be focusing elsewhere. Jasper de Maere, OTC trader at Wintermute, noted that equities and cryptocurrencies seem indifferent to detailed reports on the conflict’s trajectory, indicating a sense of fatigue or complacency.
Strong corporate earnings and robust equity markets are helping mitigate concerns about rising energy costs and geopolitical risks. In this climate, Bitcoin is trading near its upper range limit while facing resistance at $79,000, where institutional selling pressure has been significant. According to Adam Haeems from Tesseract Group, whether BTC can surpass this threshold depends on the nature of the buying interest.
The upcoming April Federal Reserve meeting presents a critical test for sustaining the rally. If ETF inflows persist through this event, $79,000 could transform into support, paving the way for higher trading levels. Conversely, if such flows diminish, Bitcoin may revert to its current range between $75,000 and $77,000.