Bitcoin has maintained its position above $77,000, following a strong rebound that has seen it reach its highest level since early February, with a 13.6% increase in April putting it on track for its best monthly performance in a year. This turnaround comes on the back of a significant improvement in the broader macroeconomic landscape, with US equities recovering to record highs.
A key driver of this move is the surge in Tether's USDT supply, which has added approximately $5 billion over the past two weeks, acting as a liquidity boost to crypto markets. Analysts view stablecoin growth as an indicator of capital flowing into the crypto market, which is a positive sign for asset prices. However, geopolitical risks persist, and markets seem to be overlooking them for now, with strong corporate earnings and resilient equity markets offsetting concerns.
The upcoming Fed meeting will be a crucial test for the current rally, with sustained institutional demand potentially marking a more durable shift in bitcoin's price.