Bitcoin has maintained its position above $77,000, building on the momentum that drove it to its highest level since early February. The cryptocurrency is poised for its strongest monthly performance in a year, with a 13.6% gain in April, as per CoinGlass data. This rebound comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018.
The broader macro environment has also improved, with US equities rebounding to record highs. A significant factor contributing to this shift is the $5 billion growth in Tether's USDT, the largest stablecoin, over the past two weeks.
This surge in stablecoin supply is often seen as a sign of increasing liquidity in crypto markets, which can drive asset prices upward. However, geopolitical risks persist, and markets seem to be showing signs of fatigue regarding the ongoing conflict. Strong corporate earnings and resilient equity markets are currently offsetting concerns about higher energy costs and geopolitical risks.
The upcoming Fed meeting in April will be a crucial test for the current rally, and the outcome will depend on whether institutional demand can sustain the momentum.