Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February, with the cryptocurrency experiencing a 13.6% increase in April, poised for its best monthly performance in a year. This rebound comes after a prolonged period of decline, with crypto markets previously experiencing their longest losing streak since 2018.
The improvement in the broader macroeconomic landscape, including a strong recovery in US equities, has contributed to this turnaround. Additionally, the growth of Tether's USDT, the largest stablecoin, has surged to nearly $150 billion, adding approximately $5 billion over the past two weeks, acting as a key driver of liquidity in crypto markets. Analysts view stablecoin growth as an indicator of capital flowing into the crypto market, which can have a positive impact on asset prices.
However, geopolitical tensions and uncertainty surrounding the Iran war persist, keeping oil prices elevated. Markets appear to be looking beyond these concerns, 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 the surge in bitcoin can be sustained.