Bitcoin has maintained its position above $77,000, following a significant surge to its highest level since early February, and is now poised for its strongest monthly gain in a year, up approximately 13.6% in April. This rebound comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018. The recent turnaround is attributed to an improved macroeconomic backdrop, with US equities reaching record highs, as well as a crypto-specific factor - the significant growth of Tether's USDT stablecoin, which has increased by about $5 billion over the past two weeks, acting as a liquidity driver in crypto markets. Analysts view stablecoin growth as an indicator of capital flowing into the crypto market, which can have a positive impact on asset prices.
However, geopolitical risks persist, and markets appear to be looking past these concerns for now, with strong corporate earnings and resilient equity markets helping to offset concerns about higher energy costs. The next test for bitcoin will be the upcoming April Fed meeting, which may determine whether the current rally is sustained, with the $79,000 level being a crucial resistance point that could potentially turn into support if institutional demand continues.