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 best monthly performance in a year, with a 13.6% increase in April, according to CoinGlass data.
This rebound comes after a challenging period, marked by the longest losing streak in crypto markets since 2018, with consecutive monthly declines from October to February. The improvement in the broader 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 stablecoin supply is seen as a positive indicator of capital flowing into the crypto market, which can lead to higher 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 key test for the current rally, with the potential to determine whether it will be sustained or fade.