Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. With a 13.6% increase in April, the cryptocurrency is poised for its best monthly performance in a year, according to CoinGlass data, rebounding from a prolonged downturn that saw consecutive monthly declines from October to February. The improvement in the broader macro environment, 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, adding approximately $5 billion over the past two weeks. This growth in stablecoins, which act as liquidity in crypto markets, is often seen as an indicator of capital flowing into the crypto market, signaling a positive outlook for asset prices.
However, geopolitical risks persist, with oil prices remaining elevated due to uncertainty surrounding the Iran war. Nevertheless, markets appear to be looking beyond these concerns, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs. The upcoming Fed meeting in April will be a crucial test for the current rally, as it may determine whether the momentum can be sustained. If institutional demand continues to drive the move, a breakout above $79,000 could mark a significant shift, potentially leading to a higher trading range.