Bitcoin: Stablecoin Supply Ratio

Hey everyone and thanks for jumping back Into the Crypt diverse today we're going To talk about Bitcoin and we're going to Be looking at the stablecoin supply Ratio if you guys like the content make Sure you subscribe to the channel give The video a thumbs up and also check out The sale on into the conference premium At into the on video Time schedule so I'm going to try to get Through this as quickly as I can this is A metric we've talked about a few times You have uh the stable coin Supply ratio Which is equivalent to bitcoin's market Cap divided by the stablecoin market cap It can be interpreted as the ratio of Bitcoin Supply and the stable coin Supply denoted in Bitcoin this Motivation is to quantify the extent of Stablecoin buying power and estimate its Potential to move the price of Bitcoin So Um when it gets up to fairly elevated Levels and the ability for this table Coin Market to move the price of Bitcoin Goes down and diminishes and I want to Take a closer look at that The reason why is because we talked About this ratio Um the the oscillator a few times and we Noted that this High here in 2019 also Or sorry this high in 2019 was the same Level that we reached here in 2023 the Reason we're making that comparison is

Because it is the pre having year note Though that in 2019 this did not Mark The top of the rally we in fact got Another rally where the stable coins fly Ratio just put in a lower high in 2023 This did not Mark the end of the rally As we know that Bitcoin went on to go Higher in mid-april at this point we are Close to the prior highs again whereas The Civil coin Supply ratio oscillator Is much lower now back over here you can See that when when the ssro bounced from Around these levels it ended up putting In a slightly lower high So that's one thing to look at Um but you might also look at 2021 and Say well you know there's examples of it Here where it was a slightly lower high But there's examples over here where it Bounced from a similar level as it is Right now and it was a slightly higher High only slightly right it didn't lead To a crazy new rally uh you know that Was like another 100 move or anything in The short term but it did lead to say a Marginally higher high right only a Slightly higher high so in 2019 it was a Lower high in 2021 it was a slightly Higher high in both cases the market did You know eight or nine months later Eventually find some lower prices than Where it was right then But I did want to at least point this Out I know it can be difficult it can be

Easy to get sucked into the market when The market moves relatively quickly but I thought that it would be prudent to Provide at least a brief update on the Ssro since it has played out Um you know in a somewhat similar way as It has uh in the past and again you can See here that we bounced off of it one Time uh when this reached around 0.67 And now has done so again at a slightly Lower level around 0.5 in 2021 we Bounced off of Um you know about 0.63 and then about 0.5 as well and then finally off we're At 0.3 or 0.4 before ultimately got into May and ultimately the bottom fell out And and in um in 2019 we know that the Bitcoin rally of course lasted until Basically the last week of June and we Ended up getting more or less a double Top in July although it did Mark a lower High on the ssro so just I think this is An indicator not to tell you exactly What's going to happen in the market of Course no indicator can but it can at Least provide some perspective unlikely Out comes moving forward if you guys Like the content make sure you subscribe Give the video a thumbs up and I'll see You guys again next time bye


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