Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. With a 13.6% increase in April, the cryptocurrency is poised for its strongest monthly performance in a year, based on data from CoinGlass. This rebound comes after a prolonged downturn, with crypto markets experiencing their longest losing streak since 2018, including consecutive monthly declines from October to February. The recent turnaround can be attributed to an improving macroeconomic backdrop, as US equities, including the S&P 500 and Nasdaq, have recovered to record highs after a brief correction earlier in the year.
A significant factor contributing to this shift is the growth of Tether's USDT, the largest stablecoin, which has increased by approximately $5 billion over the past two weeks to nearly $150 billion. This expansion is crucial, as stablecoins serve as a source of liquidity in crypto markets, signaling potential capital inflows and a positive indicator for asset prices. Despite persisting geopolitical uncertainties and elevated oil prices, markets appear to be looking beyond these concerns, with strong corporate earnings and resilient equities offsetting worries about higher energy costs and risks.
The upcoming Fed meeting in April will be a key test for the current rally, potentially determining whether it will hold or fade.