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 a 13.6% gain in April, its best monthly performance in a year, according to data from CoinGlass. The rebound comes after 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 U.S. equities with the S&P 500 and Nasdaq reaching record highs, has contributed to this turnaround. Additionally, the supply of Tether's USDT, the largest stablecoin, has increased to nearly $150 billion, with a $5 billion growth over the past two weeks, acting as a significant driver of liquidity in crypto markets. This growth in stablecoins is often seen as an indicator of capital flowing into the crypto market, which can have a positive impact on asset prices.
However, geopolitical tensions and uncertainty surrounding the Iran war continue to affect oil prices. Markets appear to be looking beyond these concerns for now, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and geopolitical risks. The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential to determine whether it will be sustained or fade.