Bitcoin has maintained its position above $77,000, following a significant surge earlier in the week to its highest level since early February, with a current price of $79,707.35. The cryptocurrency is poised for its best monthly performance in a year, with a 13.6% increase in April, according to CoinGlass data.
This rebound follows a challenging period, during which crypto markets experienced their longest losing streak since 2018, with consecutive monthly declines from October to February. The improvement in the broader macroeconomic landscape has contributed to this turnaround, with U.S. equities recovering strongly and the S&P 500 and Nasdaq reaching record highs after briefly entering correction territory.
A key driver of this move is the growth of Tether's USDT, the largest stablecoin, which has increased its supply to nearly $150 billion, adding around $5 billion over the past two weeks. This surge in stablecoin growth is often seen as an indicator of capital flowing into the crypto market, which can be a positive signal for asset prices. Despite ongoing geopolitical tensions and uncertainty surrounding the Iran war, markets appear to be looking beyond these concerns, with strong corporate earnings and resilient equity markets helping to offset worries about higher energy costs and geopolitical risks.
The next significant test for bitcoin will be the April Fed meeting, which could determine whether the current rally is sustained. If institutional demand continues to drive the move, bitcoin may break through the $79,000 level, which could potentially become a support level, paving the way for a higher trading range.