Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week to its highest level since February. This upward trend puts the cryptocurrency on track for its best monthly performance in a year, with a 13.6% increase in April, according to data from CoinGlass. The 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 with the S&P 500 and Nasdaq reaching record highs, has contributed to this turnaround. Additionally, the growth of Tether's USDT, the largest stablecoin, has surged to nearly $150 billion, with a $5 billion increase over the past two weeks, acting as a significant driver of liquidity in crypto markets. Analysts view stablecoin growth as an indicator of capital flowing into the crypto market, which is a positive signal for asset prices.
However, geopolitical tensions and uncertainty surrounding the Iran war continue to impact oil prices. Despite these concerns, markets appear to be looking beyond them, 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, with the potential to determine whether it will hold or if bitcoin will slip back into a lower trading range.