Stablecoin Supply Ratio (SSR), which is closely followed as a liquidity indicator of Bitcoin, has remained close to 9.6 in recent days. This rate coincides with the levels where significant liquidity returns were experienced in the Bitcoin market, especially in the past. According to current data from analytics firm CryptoQuant, the SSR currently sits in the average range of 9.5 to 9.6. Market experts state that the movement in this band does not produce a biased signal.
What Does SSR Measure?
SSR is obtained by dividing the total market value of Bitcoin to the total supply of stablecoins in the market. This ratio serves to measure how strong and effective liquidity stablecoins in circulation provide compared to Bitcoin. The decline in SSR indicates that growth in stablecoin supply is faster than Bitcoin’s market value. Conversely, periods when the SSR increases mean that there is a decrease in the liquidity power of stablecoins.
Support and Resistance Role of the Critical Zone
According to the data, Bitcoin has often found support when the SSR ratio has approached this stage from above the 9.5 level in the past. In this process, the increase in stablecoin supply indicated that the capital waiting on the sidelines could enter the market, while the signal of recovery or change of direction in periods of weakness in the Bitcoin price came to the fore. In this respect, a top approach to the 9.5 level can create a positive liquidity dynamic in the market.
However, this level can also function as resistance depending on the direction of the movement. If the SSR rate climbs from below 9.5 to above and cannot maintain its permanence in this region, a slowdown in the rate of liquidity increase in the market and a decrease in the relative power of stablecoins occur. Looking at historical examples, such periods brought short-term peaks.
What will be the course of liquidity?
Current levels on the SSR indicate a balance point rather than a direct bullish or bearish signal. What matters is which direction the rate will move. If the SSR squeezes downwards above 9.5, it indicates that the purchasing power in the market may increase. Conversely, an upward move from here could mean possible liquidity contraction.
Analysis company CryptoQuant stated that this level does not mean absolute optimism or pessimism. It was underlined that the main determining factor here is in which direction the rate will move. According to the company’s assessment:
“If there is an upward squeeze towards approximately 9.5 levels, the purchasing capacity in the market becomes stronger. However, when there is a rise from below to the same level, there is a potential risk of liquidity contraction.”
Bitcoin’s SSR indicator is currently hovering in this critical zone, and the next direction is expected to take shape depending on whether this area forms support or resistance.
Recent data does not indicate a meaningful lack of liquidity in the market. However, whether this situation will change in the coming period will become clear depending on the course of the SSR rate.
