Bitcoin maintained its position above $77,000 on Friday, following a notable surge to its highest level since early February. The cryptocurrency has seen a 13.6% increase in April, positioning it for its strongest monthly performance in the past year, based on data from CoinGlass. This rebound follows a challenging period, marked by the longest losing streak in crypto markets since 2018, with consecutive monthly declines from October to February.
The recovery in the broader macro environment, including a strong rebound 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, to nearly $150 billion, with an increase of about $5 billion over the past two weeks, has acted as a significant driver. This expansion of stablecoin supply is often seen as an indicator of capital flowing into the crypto market, which can be a positive signal for asset prices.
Despite ongoing geopolitical tensions and uncertainty surrounding the Iran conflict, markets appear to be looking beyond these issues, with strong corporate earnings and resilient equity markets offsetting concerns about higher energy costs and geopolitical risks. The upcoming Fed meeting in April will be a crucial test for whether the current rally can be sustained, with the potential for institutional demand to drive a more durable shift in bitcoin's price.