Stablecoin Demand Surges as Bitcoin Price Reclaims $70,000 Level
The recent activity in Bitcoin price and demand metrics suggests a potential resurgence in market interest, which could lead to a renewed all-time high.
Bitcoin has achieved a significant price rebound, reclaiming a trading level above $70,000 after previously facing resistance just below this mark. This uptrend follows a 5% increase over the past 24 hours, positioning Bitcoin at $71,933.
One factor influencing this rally is heightened demand reflected in stablecoin movements, a metric used to gauge market sentiment and potential buying interest in Bitcoin. CryptoQuant analyst BinhDang noted this in a recent post on the CryptoQuant QuickTake Platform.
Stablecoin Supply Ratio Oscillator Reflects Demand Surge
BinhDang highlighted that the Stablecoin Supply Ratio Oscillator (SSRO) has reached levels previously seen during Bitcoin’s lows, notably those observed in November 2022.
The analyst noted:
Since Bitcoin bottomed in November 2022, the 90-day and 200-day oscillators have seen lows similar to that bottom during the 3 months of Q3 2024.
The SSRO gauges the ratio of Bitcoin's market cap to prominent stablecoins like USDT, USDC, and BUSD, serving as a barometer for tracking Bitcoin's demand relative to stablecoin supply. The oscillator measures how much stablecoins flow into Bitcoin, signaling purchasing interest. Low values in the oscillator indicate an increased likelihood of stablecoins converting into Bitcoin, thereby increasing demand.
This trend has enabled Bitcoin to cross the $70,000 threshold, encouraging investor sentiment and speculation regarding potential future highs.
New Bitcoin ATH On The Horizon?
According to BinhDang, BTC could continue its upward movement if demand remains steady and aligns with favorable macroeconomic data or upcoming election insights. BinhDang wrote:
SSRO indicates high demands on the average quarterly data set (90d), breaking above the positive 2-points. If demand continues to sustain and early November announcements include favorable macro and election data, a move to and break above the positive 3-points is possible.
A rise above the SSRO's positive three-point level has coincided with strong bullish cycles in previous periods, specifically in January 2023, October 2023, and February 2024.
BTC has consistently seen price increases over the past days, touching nearly $72,000 today, with daily trading volume following the same trend. Data from CoinGecko shows that in the past 7 days, Bitcoin's 24-hour trading volume rose from below $35 billion to as high as $51.6 billion.
Featured image created with DALL-E, Chart from TradingView