Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February, with a monthly gain of approximately 13.6% in April, poised for its best monthly performance in a year, according to CoinGlass data. This rebound follows a prolonged downturn, with crypto markets experiencing their longest losing streak since 2018, marked by consecutive monthly declines from October to February. The improvement in the broader macroeconomic backdrop, including a strong recovery in U.S. 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, adding around $5 billion over the past two weeks, indicating an influx of capital into the crypto market. This growth in stablecoins, which act as liquidity in crypto markets, is often seen as a positive signal for asset prices.
However, geopolitical uncertainties and the Iran war continue to pose risks, although 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 FOMC meeting will be a critical test for the current rally, and the ability of bitcoin to break through the $79,000 level will depend on the drivers of the move and the participants involved.