Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week to its highest level since early February. According to CoinGlass data, the cryptocurrency is poised for its best monthly performance in a year, with a 13.6% increase in April.
This rebound comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018. The improvement in the macroeconomic backdrop, including a strong recovery in U.S. equities, has contributed to the turnaround. Additionally, the supply of Tether's USDT stablecoin has increased by approximately $5 billion over the past two weeks, reaching nearly $150 billion.
This growth in stablecoins, which act as liquidity in crypto markets, is often seen as an indicator of capital flowing into the crypto market, which can have a positive impact on asset prices. Despite ongoing geopolitical tensions in the Middle East, markets appear to be looking beyond these concerns, with strong corporate earnings and resilient equity markets helping to offset worries about higher energy costs.
The next significant test for bitcoin will be the upcoming Fed meeting, which may determine whether the current rally is sustained. If institutional demand continues to drive the move, a breakout above $79,000 could mark a more durable shift, while a fade in momentum may lead to a return to the $75,000-$77,000 range.