Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. The cryptocurrency is poised for a 13.6% gain in April, marking its best monthly performance in a year, according to data from CoinGlass.
This rebound follows a challenging period for crypto markets, which experienced their longest losing streak since 2018, with consecutive monthly declines from October to February. The recent turnaround can be attributed to an improved macroeconomic backdrop, with US equities recovering and the S&P 500 and Nasdaq reaching record highs after briefly entering correction territory.
A significant factor contributing to the move is the growth of Tether's USDT, the largest stablecoin, which has increased by approximately $5 billion over the past two weeks to nearly $150 billion. This surge in stablecoin supply acts as a liquidity injection into crypto markets, often interpreted as a signal of capital inflows and a positive indicator for asset prices.
Despite persistent geopolitical tensions and uncertainty surrounding the Iran conflict, 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 Federal Reserve meeting in April will be a crucial test for the current rally, with the potential to either sustain or reverse the momentum, depending on the outcome and the driving forces behind the move.