Bitcoin has maintained its position above $77,000, following a notable surge earlier in the week to its highest level since early February. According to CoinGlass data, the cryptocurrency is poised for its strongest monthly performance in a year, with a gain of approximately 13.6% in April.
This rebound comes after a challenging period for crypto markets, which experienced their longest losing streak since 2018, with consecutive monthly declines from October to February. The improvement in the broader macroeconomic landscape, including a strong recovery in US equities with the S&P 500 and Nasdaq reaching record highs, has contributed to this turnaround. Additionally, the supply of Tether's USDT, the largest stablecoin, has increased to nearly $150 billion, adding around $5 billion over the past two weeks. This growth in stablecoin supply is seen as a positive indicator for crypto markets, as it acts as a source of liquidity for traders.
Analysts view the expansion of stablecoins as a sign of capital flowing into the crypto market, which can lead to healthier asset prices. However, geopolitical tensions and uncertainty surrounding the Iran war continue to affect oil prices. Despite these concerns, markets appear to be looking beyond them, 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 direction of bitcoin will depend on the drivers of the move and the participants involved.