Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. The cryptocurrency's 13.6% increase in April puts it on track for its best monthly performance in a year, as per CoinGlass data.
This rebound comes after a challenging period, marked by the longest losing streak in crypto markets since 2018, with consecutive monthly declines from October to February. The improvement in the broader macro environment, including a strong recovery in U.S. equities, has contributed to this turnaround.
The S&P 500 and Nasdaq have regained record highs after briefly entering correction territory earlier in the year. A significant factor driving this move is the growth of Tether's USDT, the largest stablecoin, which has increased its supply to nearly $150 billion, adding around $5 billion over the past two weeks.
This surge in stablecoin supply acts as a liquidity indicator in crypto markets, signaling capital inflows and potentially driving asset prices higher. Despite persistent geopolitical tensions and uncertainty surrounding the Iran conflict, markets appear to be looking beyond these concerns, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and risks. According to Jasper de Maere, an OTC trader at Wintermute, markets have become desensitized to intricate headlines on the conflict.
The focus now shifts to the upcoming Fed meeting, which could determine the sustainability of the current rally. If institutional demand persists, bitcoin may break through the $79,000 level, potentially leading to a higher trading range.