Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. The cryptocurrency is poised for its best monthly performance in a year, with a 13.6% increase in April, according to CoinGlass data. This rebound occurs after a challenging period, during which crypto markets experienced their longest losing streak since 2018. The improvement in the broader macroeconomic landscape, including a strong recovery in US equities, has contributed to this turnaround.
Additionally, the supply of Tether's USDT has increased to nearly $150 billion, with a $5 billion growth over the past two weeks, acting as a catalyst for the move. This growth in stablecoins, which serve as liquidity in crypto markets, is often seen as an indicator of capital flowing into the crypto market, signaling a positive trend for asset prices. Despite ongoing geopolitical tensions and uncertainty surrounding the Iran war, markets appear 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 in April will be a crucial test for the current rally, with the potential to determine whether it will be sustained.