Bitcoin has maintained its position above $77,000, following a notable surge earlier in the week to its highest level since February. This upward trend puts the cryptocurrency on track for a 13.6% increase in April, its best monthly performance in a year, as per CoinGlass data.
The rebound comes after a challenging period for crypto markets, which experienced their longest losing streak since 2018 from October to February. The improvement in the broader macroeconomic landscape, with U.S. equities recovering and the S&P 500 and Nasdaq reaching record highs, has contributed to this turnaround. Additionally, the supply of Tether's USDT, the largest stablecoin, has grown to nearly $150 billion, with a $5 billion increase over the past two weeks.
This growth in stablecoins, which act as liquidity in crypto markets, is seen as a positive signal for asset prices. However, geopolitical uncertainties and the Iran war continue to pose risks. According to Jasper de Maere, an OTC trader at Wintermute, markets appear to be overlooking these concerns for now, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and geopolitical risks.
The upcoming Fed meeting in April will be a crucial test for bitcoin's current rally, with the potential to either sustain or reverse the trend.