On-chain data shows the Bitcoin stablecoin supply ratio is now showing a green signal that has proved to be profitable for the crypto several times in the last two years. Bitcoin Stablecoin Supply Ratio Shock Momentum Forms “Buy” Signal As pointed out by an analyst in a CryptoQuant post, out of the 11 previous such buy signals, 10 ended up profitable for the crypto. The “stablecoin supply ratio” (or the SSR in brief) is an indicator that measures the ratio between the market cap of Bitcoin and that of all stablecoins. Generally, whenever investors want to avoid volatility associated with cryptos like BTC, they shift their coins into stablecoins. Once they feel that prices are right to re-enter the markets again, they buy back into them. As such, the total stablecoin supply can be looked at as potential buying pressure for other cryptos. When the value of the SSR is high, it means the BTC supply is higher compared to the stablecoin cap, and thus there is low buying pressure in the market currently. Related Reading: On-Chain Data Shows Bitcoin Whale Dumping Behind Dip Below $19k On the other hand, low values of the indicator suggest there is high potential dry powder in the market right now. Because of this, such a trend can be bullish for the price of Bitcoin. Now, there is a metric called the Bitcoin SSR “shock momentum,” which tracks the rate of change in its value. Here is a chart that sho...
Coinbase Challenges WBTC Delisting Lawsuit
