Stablecoins Say Bitcoin Demand Is High: Will BTC Renew ATH?

Recent Bitcoin price and demand measures show a market interest rebound that might lead to a new all-time high.

Bitcoin has lately rebounded to over $70,000 following a period of resistance below this price. Bitcoin is now at $71,933 after a 5% rise in 24 hours.

CryptoQuant analyst BinhDang noted in a recent QuickTake Platform article that stablecoin movements, a statistic used to evaluate market sentiment and Bitcoin buy-in, are contributing to this rise.

Stablecoin SRO Shows Demand Rise

BinhDang said that the Stablecoin Supply Ratio Oscillator (SSRO) had surpassed November 2022 levels, which were Bitcoin's lows.

Since Bitcoin bottomed in November 2022, the 90-day and 200-day oscillators have witnessed comparable lows in Q3 2024.

Notably, the SSRO tool tracks Bitcoin's demand compared to stablecoin supply by comparing Bitcoin's market size to USDT, USDC, BUSD, and others.

The oscillator tracks stablecoin purchases into Bitcoin to indicate buying interest.

The oscillator's low readings at Bitcoin's November 2022 low indicate that stablecoins are more likely to be converted into Bitcoin, boosting demand.

Bitcoin has crossed $70,000, boosting investor optimism about further highs.

New Bitcoin ATH Coming?

BinhDang expects BTC to rise if demand remains constant and macroeconomic statistics or electoral insights support it. BIDang wrote:

SSRO shows strong average quarterly data set (90d) needs, exceeding positive 2-points. If demand remains strong and early November announcements and news contain good macro and election statistics, the positive 3-points might be broken.

In January 2023, October 2023, and February 2024, the SSRO rose beyond its positive three-point threshold, triggering powerful bullish cycles, according to the expert.

While BTC's price has risen steadily, reaching roughly $72,000 today, so has its daily trading volume.

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