The price of bitcoin has remained above $77,000, following a significant surge earlier in the week, consolidating its position and putting it on track for its best monthly performance since last year. This rebound comes after a challenging period, with the crypto market experiencing its longest losing streak in nearly five years. The recent upswing is attributed to an improved macroeconomic backdrop, with US equities recovering and reaching record highs.
Additionally, the supply of Tether's USDT stablecoin has increased to nearly $150 billion, with a $5 billion growth over the past two weeks, acting as a key driver for the crypto market. Analysts view this stablecoin growth as an indicator of increased capital flow into the crypto market, which is a positive signal for asset prices. However, despite the current optimism, geopolitical tensions and uncertainty surrounding the Iran conflict persist, keeping oil prices elevated. Traders have noted that markets seem to be looking past these concerns for now, focusing on strong corporate earnings and resilient equity markets instead.
The upcoming Fed meeting in April will be a crucial test for the current rally, and its outcome will determine whether the momentum can be sustained.