Glassnode predicts BTC rally as stablecoin supply tags record highs
May 4, 2021. Summarized by summa-bot.
Compression ratio: 40%. 1 min read.
Stablecoin supplies are at all-time highs, suggesting Bitcoin may soon see another rally.
The circulating supply of the four-largest stablecoins has spiked to new all-time highs, suggesting buyers could soon spark another leg up for the Bitcoin and crypto markets.
USDT’s total minted supply hit an all-time high of $51. 78 billion at the end of last week after increasing by $1. 48 billion or 3% in just seven days.
USDC supply has also increased by roughly $1 billion over the past week, with its capitalization currently sitting at $14. 5 billion, according to CoinGecko.
With the surging supply, Glassnode highlights that Bitcoin’s Stablecoin Supply Ratio (SSR), which measures the Bitcoin supply divided by the stablecoin supply, is sitting at a year-to-date low of 13. 4, and is approaching its all-time-low of 9. 6.
According to Glassnode, a decreasing SSR value is a bullish signal that the global stablecoin supply becoming larger relative to the Bitcoin market cap: