Stablecoin metric hints Bitcoin price will rise as buyers snap up BTC
Stablecoin supply ratio shows much more buying power among stablecoin holders currently, with Bitcoin trailing at $11,400. At $11,400, Bitcoin (BTC) is ripe for a fresh price surge thanks to stablecoin investors buying up cheap coins, data suggests.
Highlighting the latest readings from its stablecoin supply ratio (SSR) metric on Aug. 26, on-chain monitoring resource Glassnode forecast upside for BTC/USD.
Stablecoin supply ratio “3x stronger” than July 2019
SSR refers to the potential buying power of stablecoins over Bitcoin. A low Bitcoin price allows stablecoin owners, for example, on exchanges, to purchase more of the BTC supply. This demand pushes the price of Bitcoin up, given its predictable, verifiable supply and high stock-to-flow ratio.
As the price increases, stablecoins, which remain priced the same in whichever fiat currency they are pegged to, can buy less of the BTC supply. The ability to enter a BTC position is called “buying power.” Currently, that buying power is high, meaning stablecoin owners can purchase a comparatively large amount of the supply.
“SSR is 3x stronger than it was when BTC hit these price levels over a year ago,” Glassnode commented.
In another tweet, the firm noted that the largest stablecoin, Tether (USDT), was conspicuously primed to enter such positions.
“Further support comes from an increase in the $USDT (ERC20) balance on exchanges over the past year — indicating that stablecoins are waiting on the sidelines.”
Tether holders waiting to enter BTC?
As Cointelegraph reported, Tether’s market cap passed a landmark $10 billion in July. In terms of average daily transfer value, USDT beat both Bitcoin and PayPal this month.
One reason for increasing the supply and, therefore, the market cap of a stablecoin, is to allow investors who purchased other assets to cash out. As Glassnode explained in a blog post about SSR last December, an increase in BTC price, for example, requires more stablecoins.
“The resulting lack of liquidity in the stablecoin supply makes it harder for investors in profitable positions to exit,” the post summarizes, concluding: “In order to compensate for the lack of buying power as Bitcoin’s price increases, new fiat money needs to flow into the market, i.e. the supply of stablecoins needs to increase.”
Top Cryptocurrencies with Price Predictions
| # | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
| 1 |  BTC |
Bitcoin predictions | 64% | 72 | $96 063.98 | -0.47% | -2.09% | $1 901 129 195 801 |  |
|
|---|---|---|---|---|---|---|---|---|---|---|
| 2 |  ETH |
Ethereum predictions | 70% | 59 | $3 691.69 | -0.43% | 9.67% | $444 635 752 324 |  |
|
| 3 |  XRP |
XRP predictions | 58.8% | 88 | $2.44 | 30.24% | 64.85% | $139 283 395 122 |  |
|
| 4 |  USDT |
Tether predictions | 94.4% | 1 | $1.000651 | 0.02% | -0.04% | $134 209 508 790 |  |
|
| 5 |  SOL |
Solana predictions | 67.2% | 74 | $228.81 | -2.94% | -9.79% | $108 719 187 334 |  |
|
| 6 |  BNB |
Binance Coin predictions | 78.8% | 31 | $647.33 | -0.64% | -2.19% | $93 221 263 075 |  |
|
| 7 |  DOGE |
Dogecoin predictions | 57.6% | 93 | $0.428990 | 0.31% | 0.04% | $63 074 587 151 |  |
|
| 8 |  ADA |
Cardano predictions | 61.2% | 84 | $1.15 | 8.30% | 10.20% | $40 192 009 461 |  |
|
| 9 |  USDC |
USD Coin predictions | 95.2% | 1 | $1.000073 | 0.01% | 0.02% | $39 943 477 005 |  |
|
| 10 |  AVAX |
Avalanche predictions | 66% | 69 | $48.46 | 9.61% | 7.76% | $19 833 796 680 |  |
|
| 11 |  TRX |
TRON predictions | 61.2% | 80 | $0.209475 | 2.77% | 0.42% | $18 078 840 002 |  |
|
| 12 |  SHIB |
SHIBA INU predictions | 53.6% | 94 | $0.000030 | -1.42% | 16.50% | $17 769 142 939 |  |
|
| 13 |  TON |
Toncoin predictions | 66.4% | 62 | $6.66 | -1.15% | 8.82% | $16 957 202 724 |  |
|
| 14 |  XLM |
Stellar predictions | 58.8% | 89 | $0.534373 | 6.22% | 2.19% | $16 071 299 062 |  |
|
| 15 |  DOT |
Polkadot predictions | 60.4% | 85 | $9.05 | 2.59% | -1.75% | $13 790 732 144 |  |
