Bitcoin is holding steady above $77,000, following its strongest performance since early February, with a 13.6% gain in April putting it on track for its best monthly showing in a year. This rebound comes after a prolonged downturn, with crypto markets previously experiencing their longest losing streak since 2018. The improvement in the macro backdrop, including a strong recovery in US equities, has contributed to the turnaround. Additionally, the supply of Tether's USDT has increased by approximately $5 billion over the past two weeks, reaching nearly $150 billion, which is seen as a positive indicator of capital flowing into the crypto market.
However, geopolitical tensions and uncertainty surrounding the Iran war persist, keeping oil prices high. Markets seem to be looking past these concerns for now, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and geopolitical risks. The next test for Bitcoin will be the upcoming 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.