Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since February. This upward trend puts the cryptocurrency on track for a 13.6% increase in April, its best monthly performance in a year, according to CoinGlass data.
The improvement comes after a challenging period for crypto markets, which experienced their longest losing streak since 2018. The recent rebound is attributed to an enhanced macroeconomic backdrop, with U.S.
equities recovering and the S&P 500 and Nasdaq reaching record highs. Additionally, the supply of Tether's USDT stablecoin has grown to nearly $150 billion, with a $5 billion increase over the past two weeks, indicating a potential influx of capital into the crypto market. Analysts view stablecoin growth as a positive signal for asset prices, as it provides liquidity for traders to purchase digital assets. However, geopolitical uncertainties persist, and markets seem to be showing signs of fatigue regarding the conflict.
Strong corporate earnings and resilient equity markets are currently offsetting concerns about higher energy costs and geopolitical risks. The upcoming Fed meeting will be a crucial test for the current rally, with the potential for ETF inflows to either support or hinder the price of bitcoin.