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 puts the cryptocurrency on track for a 13.6% increase in April, its best monthly performance in a year, as per CoinGlass data. The recent rebound comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018, marked by consecutive monthly drops from October to February.
The improvement in the broader macroeconomic landscape has contributed to this turnaround, with U.S. equities, including the S&P 500 and Nasdaq, reaching record highs after a brief correction earlier in the year.
A key driver of this move within the crypto space is the significant growth in Tether's USDT, the largest stablecoin, which has increased its supply to nearly $150 billion, adding approximately $5 billion over the past two weeks. This expansion is crucial because stablecoins, being tied to fiat currencies like the U.S. dollar, serve as a source of liquidity in crypto markets, indicating capital flow into the crypto market and potentially signaling healthy asset prices.
Markets appear to be disregarding the Iran war headlines for now, with traders citing strong corporate earnings and resilient equity markets as factors offsetting concerns over higher energy costs and geopolitical risks. The upcoming Fed meeting in April will be a critical test for whether the current rally can be sustained, with the potential for ETF inflows to either support a higher trading range for bitcoin or lead to a slip back into the $75,000–$77,000 range.