Bitcoin is maintaining its position above $77,000, following a notable surge earlier in the week to its highest level since February. According to CoinGlass data, the cryptocurrency is poised for its best monthly performance in a year, with a 13.6% increase in April. This rebound follows a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018.
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 stablecoin has grown by approximately $5 billion over the past two weeks, reaching nearly $150 billion. This growth in stablecoin supply is often seen as an indicator of increased liquidity in crypto markets, which can have a positive impact on asset prices.
However, geopolitical tensions and uncertainty surrounding the Iran war continue to affect oil prices. Despite these concerns, markets appear to be looking beyond these risks, with strong corporate earnings and resilient equity markets helping to offset worries about higher energy costs. The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential to determine whether the surge in bitcoin's price is sustainable.