Bitcoin has maintained its position above $77,000, following a notable surge earlier in the week that saw it reach its highest level since early February. The cryptocurrency's 13.6% increase in April puts it on track for its most impressive monthly gain in a year, according to data from CoinGlass. This rebound comes after a challenging period for crypto markets, which experienced their longest losing streak since 2018. The recent turnaround can be attributed to an improved broader macroeconomic landscape, with US equities, including the S&P 500 and Nasdaq, recovering to record highs after a brief downturn.
A significant factor contributing to this shift is the substantial growth in the supply of Tether's USDT, the largest stablecoin, which has expanded by approximately $5 billion over the past two weeks to nearly $150 billion. This increase in stablecoin supply is crucial, as it acts as liquidity in crypto markets, signaling capital inflows and potentially driving up asset prices. However, geopolitical tensions, particularly those related to the Iran conflict, continue to pose risks. Despite this, markets appear to be looking beyond these concerns, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs.
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, bitcoin may break through the $79,000 resistance level, potentially leading to a higher trading range.