Bitcoin has maintained its position above $77,000, following a significant 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 prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018.
The recent turnaround is attributed to an improved macroeconomic backdrop, with US equities recovering to record highs. Additionally, the growth of Tether's USDT, the largest stablecoin, has added approximately $5 billion over the past two weeks, reaching nearly $150 billion.
This surge in stablecoin supply is seen as a positive indicator for crypto markets, as it provides liquidity for traders to invest in digital assets. However, geopolitical risks and uncertainty surrounding the Iran conflict persist, keeping oil prices elevated.
Markets appear to be looking past these concerns for now, 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, with the potential to determine whether it will hold or fade.