Bitcoin has maintained its position above $77,000, following its strongest performance since early February. The cryptocurrency has seen a 13.6% increase in April, positioning it for its best monthly performance in a year, according to CoinGlass data.
This rebound follows a period of decline, with crypto markets experiencing their longest losing streak since 2018. The improvement in the macro backdrop, including a strong recovery in U.S. equities, has contributed to the turnaround. Additionally, the supply of Tether's USDT has surged to nearly $150 billion, with a $5 billion increase over the past two weeks, acting as a driver for the move.
The growth of stablecoins is often seen as an indicator of capital flowing into the crypto market, which can have a positive impact on asset prices. However, geopolitical tensions and uncertainty surrounding the Iran war continue to affect oil prices.
Markets seem to be looking past these concerns for now, with strong corporate earnings and resilient equity markets offsetting concerns about higher energy costs and geopolitical risks. The next test for bitcoin will be the April Fed meeting, which could determine whether the current rally holds. If institutional demand continues, bitcoin may break through the $79,000 level, potentially leading to a higher trading range.