Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February, with a 13.6% gain in April poised to make it the best month in a year. The rebound comes after a prolonged downturn, with crypto markets previously experiencing their longest losing streak since 2018.
A key factor driving this turnaround is the significant growth in Tether's USDT stablecoin, which has increased by approximately $5 billion over two weeks, reaching nearly $150 billion. This expansion is crucial as stablecoins provide liquidity in crypto markets, signaling potential capital inflows and healthy asset prices. Although geopolitical tensions and uncertainty surrounding the Iran war persist, markets appear to be looking beyond these concerns, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and risks. The upcoming Fed meeting will be a crucial test for the current rally, with sustained institutional demand potentially leading to a more durable shift in bitcoin's price.