Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week to its highest level since February. This upward trend puts the cryptocurrency on track for its best monthly performance in a year, with a 13.6% increase in April, according to CoinGlass data. The rebound occurs after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018, from October to February.
The improvement in the broader macroeconomic landscape, including a strong recovery in U.S. equities, has contributed to the turnaround. Additionally, the supply of Tether's USDT stablecoin has increased to nearly $150 billion, with a $5 billion growth over the past two weeks, indicating a potential influx of capital into the crypto market.
Analysts view stablecoin growth as a positive signal for asset prices, as it provides liquidity for traders to purchase digital assets. However, geopolitical tensions and uncertainty surrounding the Iran war persist, keeping oil prices elevated.
Markets appear to be overlooking these concerns for now, with one trader suggesting that strong corporate earnings and resilient equity markets are offsetting worries about higher energy costs and geopolitical risks. The upcoming Fed meeting in April will be a crucial test for the current rally, and the direction of bitcoin will depend on the drivers of the move and the participants involved.