Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. The cryptocurrency is poised for its strongest 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 turnaround is attributed to an improved macroeconomic backdrop, with the S&P 500 and Nasdaq reaching record highs.
Additionally, the supply of Tether's USDT has grown by approximately $5 billion over the past two weeks, reaching nearly $150 billion. This growth in stablecoins, which act as liquidity in crypto markets, is seen as a positive indicator for asset prices.
However, geopolitical tensions and uncertainty surrounding the Iran war continue to impact oil prices. Markets appear to be looking beyond these concerns, with strong corporate earnings and resilient equity markets offsetting 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 direction of bitcoin will depend on the drivers of the move and the participants involved.