Bitcoin is currently trading above $77,000, having reached its highest level since early February. This puts it on track for a 13.6% gain in April, its best monthly performance in a year, according to CoinGlass data. The rebound follows a period of decline, with crypto markets experiencing their longest losing streak since 2018. The improvement in the macroeconomic backdrop, combined with a surge in the supply of Tether's USDT stablecoin, has driven this turnaround.
The stablecoin's supply has increased by approximately $5 billion over the past two weeks, reaching nearly $150 billion. This growth is seen as a positive signal for the crypto market, as stablecoins provide liquidity for traders. Despite ongoing geopolitical tensions, markets appear to be looking past these concerns, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs.
The next test for bitcoin will come with the April Fed meeting, which could determine whether the current rally holds. If institutional demand continues to drive the move, a breakout above $79,000 could mark a more durable shift, while a move driven by short covering may fade once momentum cools.