Bitcoin has maintained its position above $77,000, following a surge to its highest level since early February. This upward trend puts the cryptocurrency on track for its best monthly performance in a year, with a 13.6% increase in April, according to CoinGlass data. The rebound comes after a challenging period, with crypto markets experiencing their longest losing streak since 2018.
The improvement in the broader macroeconomic landscape, including a strong recovery in US equities, has contributed to the turnaround. 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 liquidity driver 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 persist, keeping oil prices elevated. Markets appear to be looking past these concerns, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and geopolitical risks. The upcoming Fed meeting will be a key test for the current rally, with the potential to determine whether the upward trend will continue.