Bitcoin is maintaining 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 a 13.6% gain in April, its best monthly performance in a year, according to CoinGlass data. The rebound comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018.
The improvement in the broader macroeconomic environment, including a strong recovery in US equities, has contributed to the turnaround. Additionally, the supply of Tether's USDT stablecoin has increased by approximately $5 billion over the past two weeks, reaching nearly $150 billion. This growth in stablecoin supply is seen as a positive indicator for the crypto market, as it acts as a source of liquidity for traders.
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 geopolitical risks. The next significant test for bitcoin will be the upcoming April Fed meeting, which may determine whether the current rally is sustained.