Bitcoin is on track for its strongest monthly performance in a year, holding above $77,000 and rising about 13.6% in April. The rebound follows a difficult stretch in which crypto markets recorded their longest losing streak since 2018, with consecutive monthly declines from October through February. Recent price strength pushed Bitcoin to its highest level since early February earlier this week, though it has struggled to break the $79,000 resistance level.
The broader macro backdrop has also improved, with U.S. equities staging a strong recovery. Major indexes such as the S&P 500 and Nasdaq Composite have returned to record highs after earlier corrections, supporting investor sentiment across risk assets.
USDT Supply Growth Signals Fresh Market Liquidity
A key crypto-specific driver behind the rally is the sharp increase in the supply of USDt issued by Tether. The stablecoin’s market capitalization has climbed to nearly $150 billion, adding roughly $5 billion over the past two weeks after months of limited growth.
Stablecoins function as liquidity within crypto markets, allowing traders to deploy capital quickly into digital assets. Analysts often view sustained stablecoin expansion as a sign of new funds entering the market, which typically supports price increases across cryptocurrencies.
Markets Look Past Geopolitical Risks as Key Events Approach
Despite ongoing geopolitical tensions involving Iran, traders suggest markets are showing signs of fatigue toward conflict-related headlines. Jasper de Maere of Wintermute said equities and crypto markets appear to have largely stopped reacting to developments in the conflict, with strong corporate earnings helping offset concerns about higher energy costs.
Attention is now shifting to the upcoming Federal Reserve policy meeting, widely seen as the next major test for the rally. Adam Haeems of Tesseract Group noted that if institutional demand and ETF inflows continue, Bitcoin could break above $79,000 and establish a higher trading range. However, if buying momentum fades, prices may retreat into the $75,000 to $77,000 range.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.