Stablecoins serve as "dry powder" for crypto purchases. The Stablecoin Supply Ratio (SSR) compares the Bitcoin supply to the stablecoin supply to assess buying power:
- A low SSR indicates more available stablecoin buying power.
- A high SSR suggests less purchasing capacity and weaker demand.
At present, the SSR is close to its baseline equilibrium. However, it is significantly lower than during the previous $100,000 breakout, even though the prices are similar. This suggests that investor purchasing power has greatly improved and that there are stronger underlying demand conditions.