Bitcoin has maintained its position above $77,000, following a notable surge to its strongest level since early February. This upward trend puts the cryptocurrency on track for its most substantial monthly gain in a year, according to data from CoinGlass, with a 13.6% increase in April. The rebound comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018.
The recent turnaround is attributed to an improved macroeconomic backdrop, with U.S. equities recovering and reaching record highs. A significant factor contributing to this shift is the substantial growth in Tether's USDT, the largest stablecoin, which has seen its supply surge to nearly $150 billion, adding approximately $5 billion over the past two weeks.
This expansion of stablecoin supply is crucial, as it acts as liquidity in crypto markets, signaling capital flow into the crypto market and potentially driving asset prices upward. Despite persistent geopolitical tensions and uncertainty surrounding the Iran war, 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, as it may determine whether the momentum can be sustained.
If institutional demand continues to drive the move, a breakout above the $79,000 level could mark a more durable shift, potentially opening the door for a higher trading range.