Bitcoin is currently trading above $76,000, following a significant surge earlier in the week to its highest level since February. This upward trend puts the cryptocurrency on track for a 13.6% gain in April, its best monthly performance in a year, according to data from CoinGlass. The rebound occurs after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018.
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. Additionally, the supply of Tether's USDT stablecoin has increased to nearly $150 billion, with a $5 billion surge over the past two weeks. This growth in stablecoin supply is seen as a positive indicator for the crypto market, as it provides liquidity for traders to purchase digital assets. Despite ongoing geopolitical tensions and uncertainty surrounding the Iran war, 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 Fed meeting in April will be a crucial test for the current rally, with the potential to determine whether it will be sustained or fade.