Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. With a 13.6% increase in April, the cryptocurrency is poised for its best monthly performance in a year, as per CoinGlass data. This rebound comes after a challenging period, marked by the longest losing streak in crypto markets since 2018, with consecutive monthly declines from October to February.
The improvement in the broader macro backdrop, including a strong recovery in U.S. equities, has contributed to this turnaround. Additionally, the growth of Tether's USDT, the largest stablecoin, has surged to nearly $150 billion, with an increase of approximately $5 billion over the past two weeks.
This expansion is significant, as stablecoins act as a source of liquidity in crypto markets, indicating a healthy signal for asset prices. Despite persistent geopolitical tensions and uncertainty surrounding the Iran war, markets appear to be looking beyond these concerns, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and risks. The upcoming Fed meeting in April will be a crucial test for the current rally, with the potential to determine whether the momentum will be sustained or fade.