Steady influx of stablecoins helps fuel Bitcoin price surge – CryptoSlate

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The global crypto market cap is $1.12 trillion with a 24-hour volume of $51.7 billion. The price of Bitcoin is $29,543.32 and BTC market dominance is 51.5%. The price of Ethereum is $1,607.05 and ETH market dominance is 17.2%. The best performing cryptoasset sector is eCommerce, which gained 9%.
Stablecoins flex their buying power, catalyzing Bitcoin’s price surge
Recent data analysis reveals a steady influx of stablecoins into Bitcoin, a phenomenon underpinned by the Stablecoin Supply Ratio (SSR) created by Glassnode. The SSR denotes the ratio between Bitcoin’s supply and that of stablecoins, with the calculation formula being: Bitcoin Market cap divided by Stablecoin Market cap.
Notably, the stablecoins considered in this framework include USDT, TUSD, USDC, USDP, GUSD, DAI, SAI, and BUSD. A lower SSR implies that the current stablecoin supply wields a greater “buying power” to purchase Bitcoin. The ratio, however, has exhibited an upward trajectory over the past few weeks, indicating an increase in Bitcoin purchases using stablecoins.
Additionally, the analysis showcases the relevance of the Stablecoin Oscillator, an SSR derivative, that quantifies the SSR’s 200-day Simple Moving Average (SMA) movement inside Bollinger Bands BB(200, 2).
On Oct. 14, the Oscillator crossed the threshold of 0 and has been rising since then, reaching 0.99. This upward trajectory is believed to be one of many catalysts in the surge of Bitcoin’s price. The increase in the SSR oscillator, as indicated by the red arrows below, appears to have facilitated previous rallies in Bitcoin.
Additionally, the outflow of stablecoins on exchanges appears to have halted, maintaining a steady level since June at approximately $18.5 billion. This represents a substantial reduction of about $25 billion from its peak to its lowest point in the same timeframe last year.
James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century’s paramount invention.
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
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