Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. The cryptocurrency's 13.6% increase in April puts it on track for its best monthly performance in a year, according to CoinGlass data, recovering from a prolonged losing streak that lasted from October to February.
The improvement in the macroeconomic backdrop, including a strong recovery in US equities, has contributed to this turnaround. Additionally, the supply of Tether's USDT stablecoin has grown to nearly $150 billion, with a $5 billion increase over the past two weeks, indicating a potential influx of capital into the crypto market. Analysts view stablecoin growth as a positive signal for asset prices, as it provides liquidity for traders to purchase digital assets.
However, geopolitical risks and uncertainty surrounding the Iran conflict persist, keeping oil prices elevated. 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, a breakout above the $79,000 level could mark a significant shift, potentially leading to a higher trading range.