Stablecoin Supply Rate Indicates Bitcoin (BTC) Rise

Recent analytical data show that the Bitcoin Stablecoin Supply rate has reached a new low level (ATL). According to data provided by the Glassnode agency, the Bitcoin Stablecoin supply rate (SSR) hit 16.180, the all-time low.

Why Is Low SSR Good For Bitcoin Traders?

Dollar-backed Stablecoins are one of the most important tools among traders to buy or sell Bitcoin on crypto exchanges. The purchasing power of Stablecoins for Bitcoin basically lies in the ability of Stablecoins to support the BTC purchase and price of US-backed Stablecoins.

? the #Bitco $ BTC Stablecoin Supply Ratio (1d MA) just reached an ATL of 16.180

Previous ATL of 16,187 was observed on 17 March 2020

View metric: https: //t.co/dZX3C28SDR pic.twitter.com/kgvvg3nyv9

– glassnode alerts (@glassnodealerts) April 1, 2020

Binance reported that the volume of Stablecoin trade rose from 35 percent to 60 percent in 2019. The transaction volume of USDT is about 6 billion USD more than BTC.

On crypto exchanges, traders use Stablecoin instead of fiat, so SSR can directly affect Bitcoin price. So, when the Stabilcoin supply rate drops, BTC price is expected to rise.

Bitcoin Half and Expectations

Less than two months to halfway, more and more crypto community members think that Bitcoin will rise in BTC price within two years after the split.

While some miners are likely to quit the job, experts say the new miners are going to replace those who go quickly. After May 2020, miners are thought to be able to start selling some of their BTC to continue their operations. Experts also think that the current financial crisis erupting due to the COVID-19 outbreak and unprecedented measures initiated by the US Fed Reserve will increase Bitcoin adoption.