Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week to its highest level since February. With a 13.6% increase in April, the cryptocurrency is on track for its best monthly performance in a year, according to data from CoinGlass. This rebound comes after a challenging period, during which crypto markets experienced their longest losing streak since 2018, with consecutive monthly declines from October to February. The improvement in the broader macroeconomic landscape has contributed to this turnaround, with US equities recovering and the S&P 500 and Nasdaq reaching record highs after briefly entering correction territory.
A key driver of this move is the growth of Tether's USDT, the largest stablecoin, which has increased its supply to nearly $150 billion, adding around $5 billion over the past two weeks. This growth in stablecoins, which act as liquidity in crypto markets, is often seen as a sign of capital flowing into the crypto market, indicating a positive outlook 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 geopolitical risks.
The next test for bitcoin will be the upcoming April Fed meeting, which could determine whether the current rally is sustained. If institutional demand continues to drive the move, bitcoin may break through the $79,000 level, potentially leading to a higher trading range.