Bitcoin is currently trading above $76,000, having reached its highest level since early February, and is poised for its best monthly performance in a year with a 13.6% gain in April. This rebound comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018.
The recent upswing can be attributed to the improved macroeconomic backdrop, with US equities recovering to record highs. 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 stablecoin supply is often seen as an indicator of capital flowing into the crypto market, which can have a positive impact on asset prices. However, geopolitical risks persist, and the upcoming April Fed meeting may determine whether the current rally will hold.
If sustained institutional demand drives the move, a breakout above $79,000 could mark a more durable shift, while a fade in momentum may lead to a retreat to the $75,000-$77,000 range.