Fast Take
The Stablecoin Provide Ratio (SSR), a key metric that quantifies the provision forces between Bitcoin and varied stablecoins, has been signaling elevated “shopping for energy” for Bitcoin prior to now ten days.
Glassnode defines the SSR because the ratio of Bitcoin’s market cap to that of stablecoins denoted in Bitcoin, which serves as a proxy for the demand-supply mechanics of BTC versus USD. When the SSR dips, it implies a heightened shopping for energy for the present stablecoin provide to buy Bitcoin.
Three weeks in the past, CryptoSlate noticed a refined upsurge within the SSR, from 0.74 to 1.04, equivalent to a rise in Bitcoin’s worth to $42,000. Again then, the SSR was at 1.04, and it’s now at 2.04. The upward motion began on Feb. 8 and coincided with the rise in Bitcoin worth to $52,000.
This implies that the demand for Bitcoin is pushed by ETF curiosity and stablecoin liquidity coming into the Bitcoin market.
