Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. The cryptocurrency's 13.6% gain in April puts it on track for its best monthly performance in a year, according to CoinGlass data, rebounding from a prolonged losing streak that lasted from October to February. The improvement in the macroeconomic landscape, including a strong recovery in US equities, has contributed to this turnaround. 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 stablecoins, which serve as a source of liquidity in crypto markets, is often seen as an indicator of capital flowing into the crypto market, which can be a positive signal for asset prices. 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 helping to offset worries about higher energy costs and geopolitical risks.
The upcoming Fed meeting in April will be a crucial test for the current rally, and the outcome will depend on the drivers of the move and the participants involved. A breakout backed by sustained institutional demand could mark a more durable shift, while a move driven mainly by short covering may fade once momentum cools.