Bitcoin has maintained its position above $77,000, following a notable surge earlier in the week to its highest level since February. This upward trend puts the cryptocurrency on track for a 13.6% increase in April, its best monthly performance in a year, according to data from CoinGlass. The 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 macroeconomic landscape, including a strong recovery in US equities with the S&P 500 and Nasdaq reaching record highs, has contributed to this turnaround.
Additionally, the growth of Tether's USDT, the largest stablecoin, to nearly $150 billion, with an increase of about $5 billion over the past two weeks, is seen as a key driver. This expansion in stablecoin supply acts as a liquidity injection into crypto markets, signaling potential capital inflows and supporting asset prices.
Meanwhile, geopolitical risks, including the Iran war, continue to pose uncertainties, but 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 will be a crucial test for the current rally, with the potential for a breakout above $79,000 if sustained institutional demand supports the move.