Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. This upward trend has positioned the cryptocurrency for its most substantial monthly gain in a year, with a 13.6% increase in April, as per CoinGlass data. The rebound occurs after a prolonged period of decline in crypto markets, which saw consecutive monthly losses from October to February.
The improvement in the broader macroeconomic landscape, coupled with a strong recovery in U.S. equities, has contributed to this turnaround. The S&P 500 and Nasdaq have regained record highs after briefly entering correction territory earlier in the year.
A significant factor driving this move is the 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 surge in stablecoin supply is crucial, as it acts as liquidity in crypto markets, signaling capital inflow and potentially driving asset prices upward. However, geopolitical tensions and uncertainty surrounding the Iran war persist, keeping oil prices elevated.
Despite these concerns, markets appear to be looking beyond them, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and geopolitical risks. The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential to determine whether it holds or falters. If institutional demand sustains, bitcoin may break through the $79,000 level, marking a more durable shift, but if momentum cools, it may slip back into the $75,000–$77,000 range.