Bitcoin Stablecoin Supply Ratio Is Approaching A “Buy” Signal

On-chain data shows the recent trend in the Bitcoin Stablecoin Supply Ratio may suggest the crypto could see a buy signal soon. Bitcoin Stablecoin Supply Ratio RSI 14 Is Near A “Buy” Signal As explained by an analyst in a CryptoQuant post, whenever the SSR RSI has gone below a value of 25 during recent years, the crypto has observed a buy signal. The “Stablecoin Supply Ratio” (or SSR in brief) is an indicator that measures the ratio between the market cap of Bitcoin, and that that of all stablecoins. As their name implies, “stablecoins” are quite stable in their value as they are usually tied to fiat currencies. Because of this, investors in the crypto market shift their coins into them in times when they want to escape the volatile markets. This can build up a reserve in the form of stablecoins that can be readily deployed into cryptos like Bitcoin whenever investors feel the prices are right to jump back in. When the value of the SSR is low, it means the stablecoin market cap is high right now. This suggests there is a large amount of stablecoins piled up currently, which can act as buying pressure for cryptos like Bitcoin, and hence can be bearish for their prices. On the other hand, the SSR being high can imply the stablecoin market cap is lesser in comparison to the BTC one at the moment. Such a trend suggests there isn’t much dry powder that can support other coins and therefore ...