Bitcoin has maintained its position above $77,000, following a significant surge to its highest level since early February. The cryptocurrency's 13.6% gain in April puts it on pace for its best monthly performance in a year, according to CoinGlass data, rebounding from a prolonged losing streak that lasted from October to February. This turnaround coincides with a broader improvement in the macroeconomic landscape, marked by a strong recovery in U.S. equities, with the S&P 500 and Nasdaq reaching record highs after briefly entering correction territory.
A key driver of this move is the notable increase in the supply of Tether's USDT, the largest stablecoin, which has grown to nearly $150 billion, adding approximately $5 billion over the past two weeks. This growth in stablecoins, which serve as liquidity in crypto markets, is often seen as an indicator of capital flowing into the crypto market, signaling a positive trend for asset prices.
However, geopolitical tensions, particularly those related to the Iran war, continue to pose risks, though markets appear to be looking past these concerns for now, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and geopolitical risks. The upcoming Fed meeting will be a crucial test for whether the current rally can be sustained, with the potential for ETF inflows to either support a higher trading range for bitcoin or lead to a decline back into the $75,000–$77,000 range.