Bitcoin is holding steady above $77,000, having reached its highest level since early February, and is poised for its best monthly performance in a year with a 13.6% gain in April. This rebound follows a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018. The improvement in the macroeconomic backdrop, including a strong recovery in US equities, has contributed to the turnaround.
Additionally, the supply of Tether's USDT stablecoin has surged to nearly $150 billion, adding around $5 billion over the past two weeks, which is seen as a positive signal for crypto market liquidity. Despite ongoing geopolitical tensions, markets appear to be looking past these concerns, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs.
The next key test for bitcoin will be the April Fed meeting, which could determine whether the current rally is sustained.