High demand for stablecoins could facilitate a new Bitcoin rally
Stablecoins have been doing really well since last year. In May, the total market value of the stablecoins exceeded $ 10 billion and has been growing ever since. They also achieved stronger purchasing power in Bitcoin with a new low supply rate, as shown by Glassnode data.
The Stablecoin Supply Ratio (SSR) is simply the circulating supply of stablecoins compared to Bitcoin. This can increase or decrease, depending on the price of Bitcoin and the total supply of stablecoins. When the SSR falls, stablecoins gain stronger buying power over Bitcoin.
New low SSR could push Bitcoin price faster
Given the role that a low SSR plays in raising the price of Bitcoin, the new low impact of stablecoins is good news for investors and holders in general. There are several indicators that, according to analysts, point to good prospects for assets. The key between these indicators is the growing adoption of Bitcoin by investors who until then did not believe in it. That includes retail and institutional investors.
Meanwhile, Bitcoin has managed to stay above $ 9,000, but has not been able to reach $ 10,000 for some time. Hopes for reaching the price, however, have been raised recently with an analyst saying that Bitcoin may be less than 50 days from finally reaching $ 10,000. It is the moment that investors expect – to overcome the psychological price without going back.
$ 10,500 will start a parabolic movement
The $ 10,000 price was a barrier to another major Bitcoin movement and it seems that crossing that level will lead to new price levels. This is confirmed by another analyst who says the June 2019 highs will be revisited “quickly” when Bitcoin manages to cross $ 10,500. He wrote on Twitter:
“I believe that we reached a positive point at the end of this year and, when we finish with 10.5 thousand, we will see the highs of June 19th very quickly. I can see something like this happening. Above 10,500, I think we yearn for freedom. ”
Yesterday, the digital asset experienced a brief upward movement that took its price to $ 9,300, but is currently trading at $ 9,254. It will be interesting to see how the price is affected by the new SSR, both in the short and long term, and where the price will be at the end of the year.