Bitcoin has maintained its position above $77,000, following a strong rebound earlier in the week to reach its highest level since February, with a 13.6% gain in April putting it on track for its best monthly performance in a year. The resurgence comes after a prolonged downturn, with crypto markets experiencing their longest losing streak since 2018.
The improvement in the macroeconomic backdrop, including a strong US equities recovery, has contributed to the turnaround. Additionally, the supply of Tether's USDT stablecoin has increased by approximately $5 billion over the past two weeks, reaching nearly $150 billion, which is seen as a positive indicator for crypto market liquidity. Despite ongoing geopolitical tensions, markets seem to be looking beyond these concerns, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and risks. The upcoming Fed meeting will be a key test for the current rally, with sustained institutional demand potentially marking a more durable shift in the market.