Bitcoin has maintained its position above $77,000, consolidating after reaching its highest level since early February. The cryptocurrency is poised for its best monthly performance in a year, with a 13.6% gain in April, according to CoinGlass data. This rebound follows a prolonged downturn, with crypto markets experiencing their longest losing streak since 2018.
The improvement in the broader macro environment, including a strong recovery in U.S. equities, has contributed to the turnaround. Additionally, the supply of Tether's USDT has surged to nearly $150 billion, adding approximately $5 billion over the past two weeks, which is seen as a positive signal for crypto market liquidity. Analysts view stablecoin growth as an indicator of capital flowing into the crypto market, which can drive up asset prices.
However, geopolitical tensions and uncertainty surrounding the Iran war persist, keeping oil prices elevated. Markets appear to be looking past these concerns for now, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and geopolitical risks. The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential to determine whether it will hold or fade.