Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week to its highest level since February. The cryptocurrency is poised for its best monthly performance in a year, with a 13.6% increase in April, according to CoinGlass data.
This rebound comes after a prolonged period of decline, with crypto markets 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 supply of Tether's USDT stablecoin has increased to nearly $150 billion, with a $5 billion growth over the past two weeks, acting as a key driver of liquidity in crypto markets.
Analysts view stablecoin growth as an indicator of capital inflow into the crypto market, which can have a positive impact on asset prices. Despite ongoing geopolitical tensions in the Middle East, 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. If institutional demand continues to drive the move, a breakout above the $79,000 level could mark a significant shift, while a fade in momentum could lead to a return to the $75,000-$77,000 range.