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 its most substantial monthly gain in a year, with a 13.6% increase in April, according to CoinGlass data. The rebound occurs after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018.
The broader macroeconomic environment has improved, with U.S. equities recovering and the S&P 500 and Nasdaq reaching record highs.
A key driver of the crypto market's turnaround is the significant growth in Tether's USDT stablecoin, which has increased by approximately $5 billion over the past two weeks, reaching nearly $150 billion. This expansion is crucial as stablecoins act as liquidity in crypto markets, signaling capital inflow and a positive indicator for asset prices. Despite persistent geopolitical uncertainty and elevated oil prices, markets seem to be overlooking 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, and the direction of bitcoin will depend on the driving forces behind the move and the participants involved.