Bitcoin is currently trading above $77,000, having reached its highest level since early February. The cryptocurrency has seen a 13.6% increase in April, making it likely to have its best monthly performance in a year, according to data from CoinGlass. This rebound follows a period of decline, with crypto markets experiencing their longest losing streak since 2018. The improvement in the broader macroeconomic backdrop, including a strong recovery in US equities, has contributed to this turnaround.
Additionally, the supply of Tether's USDT stablecoin has surged to nearly $150 billion, with a $5 billion increase over the past two weeks, which is seen as a positive signal for the crypto market. Despite ongoing geopolitical tensions and uncertainty surrounding the Iran war, markets appear to be looking past these concerns, with strong corporate earnings and resilient equity markets offsetting concerns about higher energy costs and risks.
The next test for bitcoin will be the April Fed meeting, which could determine whether the current rally will hold.