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% gain in April, its best monthly performance in a year, according to data from CoinGlass. The rebound comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018. The improvement in the broader macroeconomic environment, including a strong recovery in U.S.
equities with the S&P 500 and Nasdaq reaching record highs, has contributed to this turnaround. Additionally, the growth of Tether's USDT, the largest stablecoin, has surged to nearly $150 billion, with an increase of about $5 billion over the past two weeks.
This expansion of stablecoin supply acts as a liquidity indicator in crypto markets, signaling potential capital inflows. Analysts view stablecoin growth as a positive sign for asset prices.
However, geopolitical uncertainties, particularly regarding the Iran war, continue to affect oil prices. Despite these concerns, markets seem to be shifting focus away from geopolitical risks, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs.
A significant test for bitcoin's momentum will come with the upcoming Federal Reserve meeting, which may determine whether the current rally is sustainable. The ability of bitcoin to break through the $79,000 level will depend on the drivers of the move and the participation of institutional buyers.
A breakout supported by sustained demand could mark a durable shift, while a move driven by short covering may fade once momentum cools.