Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week to its highest level since 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 comes after a prolonged downturn, with crypto markets experiencing 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 stablecoin has increased by approximately $5 billion over the past two weeks, reaching nearly $150 billion. This growth in stablecoin supply is seen as a positive indicator for the crypto market, as it provides liquidity for traders to purchase digital assets.
Analysts view the expansion of stablecoins as a sign of capital flowing into the crypto market, which can lead to higher asset prices. However, geopolitical tensions and uncertainty surrounding the Iran war continue to pose risks. Despite this, markets appear to be looking beyond these concerns, with strong corporate earnings and resilient equity markets helping to offset worries about higher energy costs and geopolitical risks. The upcoming Fed meeting in April will be a crucial test for the current rally, and the direction of bitcoin will depend on the drivers of the move and the participants involved.