Bitcoin has maintained its position above $77,000, following a surge to its highest level since early February. With a 13.6% increase in April, it is on track for its best monthly performance in a year, according to CoinGlass data, rebounding from a prolonged losing streak.
The improvement in the broader macroeconomic backdrop, including a strong recovery in US equities, has contributed to this turnaround. Additionally, the supply of Tether's USDT has grown to nearly $150 billion, with a $5 billion increase over the past two weeks, acting as a liquidity driver 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 persist, keeping oil prices elevated.
For now, markets seem to be looking past these concerns, with strong corporate earnings and resilient equity markets offsetting concerns about higher energy costs and geopolitical risks. The upcoming Fed meeting will be a crucial test for the current rally, and the direction of bitcoin will depend on the drivers of the move and the participation of institutional buyers.