Market & MacroWeight: 67 / 100 · Source: DefiLlama

Stablecoin Supply Ratio — Bitcoin Dry Powder Signal

The Stablecoin Supply Ratio (SSR) measures the relative size of Bitcoin's market cap versus the total stablecoin supply. A low ratio means there is a large amount of stablecoin 'dry powder' available to deploy into Bitcoin — historically bullish.

What It Measures

Bitcoin's market cap divided by total stablecoin supply (USDT, USDC, DAI, and others). Captures the purchasing power available in stablecoins relative to the size of the Bitcoin market.

How It's Calculated

SSR = Bitcoin Market Cap / Total Stablecoin Market Cap. Low SSR = more relative stablecoin firepower available. From DefiLlama stablecoin supply data.

Bottom Signal

Low SSR — stablecoin supply is large relative to Bitcoin market cap, meaning more potential buying power on the sidelines. Bears have already converted to stablecoins; dry powder is ready.

Historical Readings at Cycle Bottoms

Nov 2022: SSR at historic lows as stablecoin supply peaked while BTC market cap was at bottom | 2020 COVID crash: low SSR preceded rapid recovery