- Bitcoin Surged Past $70,000 as the Stablecoin Supply Ratio Oscillator Highlighted High Demand
- Bitcoin open interest rose 8.85%, indicating potential for further bullish momentum
After weeks of struggling to break the $70,000 resistance, Bitcoin finally rose past this critical level and was trading near $72,000 at the time of writing. The cryptocurrency’s recent price action attracted a lot of attention, with the crypto rising 3.9% in the past 24 hours.
This recovery occurred amid an overall increase in demand indicated by several market metrics – a sign that investors are regaining confidence in Bitcoin.
For example, BinhDang, an analyst from CryptoQuant, highlighted that BTC demand is now on an upswing, as highlighted by the Stablecoin Supply Ratio Oscillator (SSRO).
Source: CryptoQuant
The SSRO measures Bitcoin’s market capitalization against stablecoins such as USDT, USDC, BUSD, and others, providing insight into the buying demand fueled by these stablecoins. According to BinhDang, the oscillator data indicated a surge in stablecoin-fueled buying interest, a development that was similar when Bitcoin bottomed in late 2022.
At the time of writing, Bitcoin’s 90-day SSRO marked a rebound in quarterly demand, surpassing the positive 2-point mark. As the cryptocurrency enters November, the continuation of this demand – coupled with positive news in the macroeconomic landscape – could further strengthen Bitcoin’s position, potentially pushing it to new highs.
Other key metrics show strengthening fundamentals
In addition to cryptocurrency price movements, Bitcoin’s fundamental metrics are also showing renewed strength.
In reality, facts from Glassnode indicated an increase in the number of active BTC addresses in recent weeks, indicating more participants are re-entering the market. By the end of October, there were already more than 760,000 active addresses, compared to less than 700,000 just days before.
Source: Glassnode
The fluctuation of this measure highlighted shifting market involvement, with the latest upswing implying renewed interest, which often correlates with bullish price action. Greater activity across addresses means more transactions are taking place on the BTC network, which is often a favorable indicator of rising demand and market activity.
At the same time, Bitcoin’s open interest, such as followed of Coinglass, increased 8.85% to $42.56 billion. This increase in Open Interest – especially notable as it rose 118.55% in volume to $80.43 billion – demonstrated greater participation from futures and derivatives traders.
Source: Coinglass
A rising Open Interest usually means more capital flowing into the market. This could create momentum and push prices higher as traders position themselves to profit from Bitcoin’s next potential move.