Bitcoin is holding steady above $77,000, following a significant surge earlier in the week to its highest level since February. The cryptocurrency's 13.6% gain in April puts it on track for its strongest monthly performance in a year, as per CoinGlass data, rebounding from a prolonged downturn that saw consecutive monthly declines from October to February. The improvement in the broader macroeconomic landscape, including a strong recovery in US equities with the S&P 500 and Nasdaq reaching record highs, has contributed to this turnaround. Additionally, the supply of Tether's USDT, the largest stablecoin, has increased to nearly $150 billion, with a $5 billion growth over the past two weeks, which is seen as a positive signal for crypto market liquidity and asset prices.
Analysts view stablecoin growth as an indicator of capital flowing into the crypto market. Despite persisting geopolitical uncertainties, including the Iran war, markets seem to be looking beyond these concerns, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and geopolitical risks.
The upcoming Fed meeting will be a crucial test for the current rally, with the potential for institutional demand to drive a more lasting shift in bitcoin's price.