Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. The cryptocurrency's 13.6% gain in April puts it on track for its best monthly performance in a year, according to CoinGlass data, rebounding from a prolonged downturn that saw consecutive monthly declines from October to February.
The improvement in the macroeconomic backdrop, marked by a strong recovery in US equities with the S&P 500 and Nasdaq reaching record highs, has contributed to the turnaround. Additionally, the significant growth in Tether's USDT, the largest stablecoin, has increased by approximately $5 billion over the past two weeks, reaching nearly $150 billion. This expansion is seen as a key driver, as stablecoins provide liquidity to crypto markets, signaling a healthy influx of capital. Despite persistent geopolitical uncertainty and elevated oil prices due to the Iran conflict, markets appear to be looking beyond these concerns, with strong corporate earnings and equity market resilience offsetting worries about higher energy costs and geopolitical risks.
The upcoming Fed meeting in April will be a crucial test for the current rally's sustainability.