Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. This upward trend puts the cryptocurrency on track for a 13.6% gain in April, marking its best monthly performance in a year, according to data from CoinGlass.
The rebound occurs after a challenging period for crypto markets, which experienced their longest losing streak since 2018. The improvement in the macroeconomic backdrop, including a strong recovery in US equities, has contributed to this turnaround. Additionally, the supply of Tether's USDT stablecoin has increased to nearly $150 billion, with a $5 billion growth over the past two weeks, acting as a significant driver for the crypto market. This surge in stablecoin supply is seen as an indicator of capital flowing into the crypto market, which can be a positive signal for asset prices.
However, geopolitical tensions and uncertainty surrounding the Iran conflict continue to impact oil prices. Markets appear to be looking beyond 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, potentially determining whether it will hold or fade.