Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. With a 13.6% increase in April, the cryptocurrency is poised for its best monthly performance in a year, according to data from CoinGlass.
This rebound comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018. The improvement in the macroeconomic backdrop, including a strong recovery in US equities, has contributed to this turnaround. Additionally, the supply of Tether's USDT, the largest stablecoin, has grown to nearly $150 billion, with a $5 billion increase over the past two weeks.
This growth in stablecoins, which act as liquidity in crypto markets, is often seen as a sign of capital flowing into the crypto market, which can have a positive impact on asset prices. Despite ongoing geopolitical tensions and uncertainty surrounding the Iran war, markets appear to be looking beyond these concerns, with strong corporate earnings and resilient equity markets helping to offset worries about higher energy costs and risks.
The next major test for bitcoin will come with the April Fed meeting, which may determine whether the current rally can be sustained. If institutional demand continues to drive the move, a breakout above $79,000 could mark a more durable shift, while a fade in momentum could lead to a return to the $75,000-$77,000 range.