Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week to its highest level since February. According to CoinGlass data, the cryptocurrency is poised for its best monthly performance in a year, with a 13.6% increase in April.
This rebound comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018. The improvement in the broader macroeconomic landscape, including a strong recovery in US equities, has contributed to this turnaround. Furthermore, the supply of Tether's USDT stablecoin has grown to nearly $150 billion, adding approximately $5 billion over the past two weeks. This growth in stablecoin supply is seen as a positive indicator for the crypto market, as it acts as a source of liquidity for traders.
Analysts view the expansion of stablecoins as a sign of capital flowing into the crypto market, which can drive up asset prices. However, geopolitical tensions and uncertainty surrounding the Iran war continue to affect oil prices. Despite these concerns, markets appear to be looking beyond the current situation, with one trader suggesting that strong corporate earnings and resilient equity markets are offsetting worries about higher energy costs and geopolitical risks.
The upcoming Federal Reserve meeting in April will be a crucial test for the current rally, and the outcome may determine whether bitcoin can break through the $79,000 level, which has proven to be a significant barrier.