Bitcoin is currently trading above $77,000, having reached its highest level since early February, with a 13.6% gain in April putting it on track for its best monthly performance in a year. This rebound follows a prolonged period of decline, with the crypto market having experienced its longest losing streak since 2018. The improvement in the macroeconomic backdrop, including a strong recovery in US equities, has contributed to the turnaround.
Additionally, the growth of Tether's USDT, with a $5 billion increase in supply over the past two weeks, is seen as a positive signal for the crypto market, as stablecoins act as a source of liquidity. However, geopolitical tensions and uncertainty surrounding the Iran war continue to pose risks, and the upcoming Fed meeting may determine whether the current rally is sustained. Analysts note that a breakout above $79,000, driven by institutional demand, could mark a more durable shift, while a move driven by short covering may fade once momentum cools.