Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February, with the cryptocurrency now poised for its strongest monthly gain in a year, up approximately 13.6% in April. This rebound marks a significant turnaround from the consecutive monthly declines experienced from October through February. The improvement in the macroeconomic backdrop, including the recovery of US equities to record highs, has contributed to this shift.
Additionally, the growth of Tether's USDT, the largest stablecoin, to nearly $150 billion, with an increase of about $5 billion over the past two weeks, has provided a crypto-specific driver for the move, as stablecoins act as liquidity in crypto markets. According to analysts, this growth can be seen as an indicator of capital flowing into the crypto market, which is a positive signal for asset prices. Despite persistent 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 risks. The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential for ETF inflows to determine whether the rally will hold, and possibly push bitcoin into a higher trading range.