Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. The cryptocurrency is poised for its strongest monthly performance in a year, with a 13.6% increase in April, according to 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 macroeconomic landscape, including a strong recovery in US equities, has contributed to this turnaround.
Additionally, the supply of Tether's USDT, the largest stablecoin, has grown to nearly $150 billion, with a $5 billion increase over the past two weeks, providing a significant boost to crypto market liquidity. This growth in stablecoins is often seen as an indicator of capital flowing into the crypto market, which can have a positive impact on asset prices. However, geopolitical tensions and uncertainty surrounding the Iran war continue to affect oil prices. Markets appear to be looking beyond these concerns for now, with one trader suggesting that strong corporate earnings and resilient equity markets are offsetting worries about higher energy costs and geopolitical risks.
The upcoming Fed meeting in April will be a crucial test for the current rally, and the direction of bitcoin will depend on the drivers of the move and the participation of institutional buyers.