Third highest rate of stablecoin outflows into Bitcoin in 5 years Definition
- The Stablecoin Supply Ratio (SSR) is the ratio between Bitcoin supply and the supply of stablecoins denoted in BTC, or: Bitcoin Market cap / Stablecoin Market cap. We use the following stablecoins for the supply: USDT, TUSD, USDC, USDP, GUSD, DAI, SAI, and BUSD.
- When the SSR is low, the current stablecoin supply has more “buying power” to purchase BTC. It serves as a proxy for the supply/demand mechanics between BTC and USD.
Quick Take
- The stablecoin supply ratio has broken the upper bound for the third time in five years.
- This suggests stablecoins are being redeemed for Bitcoin, which is encouraging during a risk-off environment and not being redeemed for dollars.
- The last two times the SSR broke the upper BB was in Jan 2021 and June 2019, when Bitcoin hit a local top on both occasions.
- The SSR is still relatively close to all-time lows — suggesting a lot of stablecoin buying power is still yet to be deployed.
Analyst 
James Van Straten
James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century's paramount invention.
In this insight
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Glassnode
Glassnode brings data intelligence to the blockchain and cryptocurrency space.
