Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week to its highest level since early February, with a 13.6% increase in April putting it on track for its best monthly performance in a year. 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 macro backdrop, with US equities recovering and reaching record highs, as well as a crypto-specific driver - the growth of Tether's USDT, which has added approximately $5 billion over the past two weeks. The increase in stablecoin supply is seen as a positive signal for asset prices, as it acts as liquidity in crypto markets.
Despite ongoing geopolitical tensions, markets appear to be looking past these concerns, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs. The next test for bitcoin will be the upcoming April Fed meeting, which could determine whether the current rally holds, with institutional demand playing a crucial role in a potential breakout above the $79,000 level.