Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week to its highest level since February. This translates to a 13.6% increase in April, putting it on track for its best monthly performance in a year, as per CoinGlass data. The cryptocurrency's rebound comes after a challenging period, marked by its longest losing streak since 2018, with consecutive monthly declines from October to February.
The broader macroeconomic landscape has improved, with US equities, including the S&P 500 and Nasdaq, reaching record highs after a brief dip into correction territory. A key driver of this move is the significant growth in Tether's USDT, the largest stablecoin, which has increased by approximately $5 billion over the past two weeks to nearly $150 billion. This surge in stablecoin supply is crucial, as it acts as liquidity in crypto markets, signaling capital inflow and a positive indicator for asset prices.
Despite ongoing geopolitical tensions and uncertainty surrounding the Iran war, markets seem to be looking beyond these concerns, 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 critical test for the current rally, with the potential to determine whether the surge in bitcoin is sustainable or if it will fade.