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 has positioned the cryptocurrency for its best monthly performance in a year, with a 13.6% increase in April, according to CoinGlass data. The recovery comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018.
The improvement in the broader macroeconomic landscape, including a strong recovery in U.S. equities, has contributed to the turnaround.
Additionally, the growth of Tether's USDT, the largest stablecoin, has surged to nearly $150 billion, with a $5 billion increase over the past two weeks, acting as a significant driver of liquidity in crypto markets. Analysts view stablecoin growth as an indicator of capital flowing into the crypto market, which is a positive signal for asset prices.
However, geopolitical tensions and uncertainty surrounding the Iran war continue to affect oil prices. 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 Fed meeting in April will be a crucial test for the current rally, with the potential to determine whether the surge in bitcoin prices will be sustained.