Bitcoin has maintained its position above $77,000, following a significant 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 comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018. The turnaround can be attributed to the improved macro backdrop, with U.S.
equities recovering and the S&P 500 and Nasdaq reaching record highs. Additionally, the growth of Tether's USDT, the largest stablecoin, has surged to nearly $150 billion, with a $5 billion increase over the past two weeks. This growth is seen as a positive signal for asset prices, as stablecoins act as liquidity in crypto markets. However, geopolitical tensions and uncertainty surrounding the Iran war persist, keeping oil prices elevated.
Despite this, markets seem to be looking past these concerns, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and geopolitical risks. The upcoming Fed meeting will be a key test for the current rally, with the potential for ETF inflows to determine whether the rally holds or fades.