Bitcoin has maintained its position above $77,000, following its strongest performance since early February. With a 13.6% increase in April, it is poised for its best monthly performance in a year, according to CoinGlass data, rebounding from a prolonged losing streak. The improvement in the broader macroeconomic landscape, including a strong recovery in US equities, has contributed to this turnaround.
Additionally, the supply of Tether's USDT has surged to nearly $150 billion, adding around $5 billion over the past two weeks, which acts 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. 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 upcoming Fed meeting will be a crucial test for the current rally, with the potential to determine whether the surge in bitcoin's price will be sustained.