#EducationalPost: What is the Stablecoin Supply Ratio (SSR)?
The Stablecoin Supply Ratio (SSR) measures the relationship between the supply of Bitcoin and the supply of stablecoins, expressed in BTC terms. It is calculated using the formula:
SSR = Bitcoin Market Cap / Stablecoin Market Cap
This ratio acts as a proxy for understanding the supply and demand dynamics between #Bitcoin (BTC) and #USD-denominated stablecoins.
Traders and analysts often use the SSR oscillator to spot market trends and identify potential buying or selling opportunities in Bitcoin:
A low SSR suggests that stablecoins have stronger buying power, making it easier to purchase BTC — often seen as a bullish signal.
A high SSR indicates weaker buying power from stablecoins, suggesting less demand for BTC — potentially a bearish signal.
