Stablecoin Flow Marks Possible Market Shift
The Stablecoin Supply Ratio (SSR), a crucial metric indicating the purchasing power of stablecoins in comparison to Bitcoin, has experienced notable changes.
Calculated as Bitcoin Market Cap divided by Stablecoin Market Cap, the SSR provides insights into the balance between Bitcoin and USD supply and demand. A lower SSR suggests increased potential purchasing power for Bitcoin.
In October, the SSR exceeded its upper limit, signaling a potential oversupply of Bitcoin compared to stablecoins. Recent data indicates a renewed influx of stablecoins into Bitcoin.
This trend is supported by the Stablecoin Oscillator, a tool derived from the SSR. The Oscillator tracks the movement of the SSR's 200-day SMA within the Bollinger Bands.
The latest reading of the Oscillator is 3.42, slightly lower than the October peak of over 4.1. This uptick confirms the recent surge in stablecoin rotation into Bitcoin, notably observed during the latest price increaseâŠ
