Buying Pressure Causes BTC/Stablecoin Supply Ratio To Drop
The BTC/Stablecoin supply ratio is, as the name would suggest, a measurement of the amount of Bitcoin in circulation in comparison to stablecoins. Recently, however, these ratios have returned to levels that typically herald a bullish buying momentum.
SSR Showing Very Bullish MetricsBt
Glassnode, one of the prominent on-chain analytics providers out there, has made note of this ratio within its latest report. This report warned that the Bitcoin Stablecoin Supply Ratio, or SSR, has seen a significant decline in 2021, mostly due to the volume of stablecoins being minted.
The SSR shows a large stablecoin supply compared to BTC when it’s low, which proves BTC and other crypto assets have more buying power ready to flow into it. Another key thing to consider with these stablecoins, is that they are highly liquid more often than not, as many of them are quickly deposited within exchanges.
The year of 2021 has seen a general influx of stablecoins within various crypto exchanges at large. This is especially true for the USDC, the USD-backed stablecoin boasting the second-largest market share out there.
Sheer Volume of Stablecoins Astounding
Glassnode warned that the SSR remains low even with BTC maintaining very high price action. As a result, the firm has concluded that there has been a massive influx of stablecoins within the ecosystem at large as of late.
Since the start of 2021, Circle has opted to mint more than a billion USD-backed coins, with the research making it clear that around 90% of those coins have all managed to end up within crypto exchanges at large.
Circle has also made big strides in other places, such as integrating its payment platform within the new trading app of Blockfolio, which boosts the stablecoin’s popularity even more.
2021 Promising To Be Another Bullish Year
Willy Woo, a crypto analyst, has declared this stage of time to be the 2021 bull market’s first great consolidation. Even so, Woo opted to show the world the numerous metrics and charts of various metrics, such as the Bitcoin Spent Output Profit Ratio (SOPR) that shows the market is still quite bullish.
Bitcoin’s price stands at around $35,000 at the time of writing, and it seems that the bull run is eager to begin. Time will tell how far the price will rise this time, but it’s clear that Bitcoin isn’t done quite yet with its price actions. With time, even the likes of Peter Schiff might come to admit that they were wrong about Bitcoin, but then again pigs could fly, too.
