Recent activity in Bitcoin price and demand figures suggests a potential resurgence in market interest, which could lead to a new all-time high.
So far, Bitcoin has recently made a significant price recovery, regaining trading levels above $70,000 after a sustained period of resistance just below this price level. This uptrend follows a 5% increase in the past 24 hours, which valued Bitcoin at $71,933 at the time of writing.
One factor influencing this rally is increased demand reflected in stablecoin movements, a metric often used to gauge market sentiment and potential buy-in for Bitcoin. CryptoQuant analyst BinhDang highlighted this in a recent publication. after on the CryptoQuant QuickTake platform.
Stablecoin Supply Ratio Oscillator Reflects Demand Increase
BinhDang highlighted that the Stablecoin Supply Ratio Oscillator (SSRO) has reached levels previously seen during Bitcoin’s lows, particularly those observed in November 2022.
The analyst noted:
Since Bitcoin bottomed in November 2022, the 90-day and 200-day oscillators have seen lows similar to that bottom during the three months of the third quarter of 2024.
In particular, the SSRO tool, which measures the ratio of Bitcoin’s market capitalization to that of prominent stablecoins such as USDT, USDC, BUSD, and others, is a barometer for tracking Bitcoin demand relative to stablecoin supply.
The oscillator measures the extent to which stablecoins, which are often used for Bitcoin purchases, flow into Bitcoin, signaling buying interest.
When the oscillator shows low values, such as during Bitcoin’s November 2022 low, it implies that stablecoins are more likely to be converted into Bitcoin, increasing demand.
This trend has led Bitcoin to cross the $70,000 threshold, boosting investor sentiment and speculation about possible future highs.
New Bitcoin ATH on the Horizon?
According to BinhDang, BTC could continue its upward movement if demand remains stable and aligns with favorable macroeconomic data or upcoming election insights. BinhDang wrote:
SSRO indicates high demands on the average quarterly data set (90d) and exceeds the positive 2 points. If demand continues and the announcements and news in early November include some favorable macro and election data, a move and breakout above positive 3 points is possible.
The analyst notes that a rise above the SSRO’s positive three-point level coincided with strong bullish cycles in previous periods, particularly in January 2023, October 2023 and February 2024.
While BTC has seen consistent price increases in recent days, reaching nearly $72,000 today, the asset’s daily trading volume is showing the same trend.
Special, facts from CoinGecko shows that Bitcoin’s 24-hour trading volume has risen from less than $35 billion as of last Tuesday to as high as $51.6 billion over the past seven days.
Featured image created with DALL-E, Chart from TradingView