Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. The cryptocurrency's 13.6% gain in April puts it on track for its most substantial monthly increase in a year, according to data from CoinGlass.
This rebound follows a challenging period for crypto markets, which experienced their longest losing streak since 2018, with consecutive monthly declines from October to February. The improvement in the broader macroeconomic landscape, including a strong recovery in US equities, has contributed to the turnaround. The S&P 500 and Nasdaq have rebounded to record highs after briefly entering correction territory earlier in the year.
A significant factor driving the move is the $5 billion growth in Tether's USDT supply over the past two weeks, reaching nearly $150 billion. As the largest stablecoin, USDT acts as a key source of liquidity in crypto markets, indicating capital inflows and a positive signal for asset prices. However, geopolitical tensions and uncertainty surrounding the Iran war persist, keeping oil prices elevated.
Despite this, markets appear to be looking beyond these concerns, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and geopolitical risks. The upcoming April Fed meeting will be a crucial test for the current rally, and the sustainability of the move will depend on the drivers behind it and the participation of institutional buyers.