<\/p>\n
- \n
- The purchasing power of the market rose as stablecoins\u2019 combined market cap spiked<\/em><\/li>\n
- Bitcoin can gain from greater stablecoin whale supply<\/em><\/li>\n<\/ul>\n
The market cap of stablecoins including <\/span>Tether [USDT]<\/span><\/a>, <\/span>Circle [USDC]<\/span><\/a>, <\/span>DAI<\/span><\/a>, and others, grew significantly during the week. This hike was significant to the price appreciation <\/span>Bitcoin [BTC]<\/span><\/a> recorded, according to Santiment.<\/span><\/p>\n
\nRealistic or not, here\u2019s <\/span>USDC\u2019s market cap in BTC terms<\/span><\/a><\/p>\n
\nBuyers are getting ready for BTC<\/h3>\n
In a recent post, the on-chain analytics platform explained how the growth implies a surge in the purchasing power of the broader market. However, it was also quick to point out that the strength of whales\u2019 accumulation of stablecoins has not yet been reflected on the market.<\/p>\n
\n
\ud83d\udcb8 The combined market caps of #stablecoins<\/a> $USDT<\/a>, $USDC<\/a>, $BUSD<\/a>, $DAI<\/a>, $TUSD<\/a>, & $USDP<\/a> surged this past week, increasing buying power that assisted #Bitcoin<\/a> to #30K<\/a>. More sustained rises will come when whales accumulate stablecoins while $BTC<\/a> remains flat. https:\/\/t.co\/Fh16oIzHUI<\/a> pic.twitter.com\/UX9YjGZNJB<\/a><\/p>\n
\u2014 Santiment (@santimentfeed) October 20, 2023<\/a><\/p>\n<\/blockquote>\n
Santiment also shared that Bitcoin\u2019s price may rise well above $30,000. However, this might only happen when whales begin putting their buying power into use. Although on-chain data revealed that whales currently hold about 50 % of the total stablecoin supply, a hike in the market share could be the stimulant Bitcoin needs to neutralize the doubt around its possible hold on the $30,000-level.<\/span><\/p>\n
A look at the Stablecoin Supply Ratio (SSR) underlined that the metric has risen of late. Using the supply of stablecoins including USDC, USDT, <\/span>BUSD<\/span><\/a>, and the rest, <\/span>the <\/span>SSR<\/span><\/a> is the ratio between Bitcoin\u2019s supply and the supply of stablecoins denoted in BTC.<\/span><\/p>\n
The result of this calculation serves as a proxy for the supply\/demand mechanics between BTC and USD. At the time of writing, the SSR was 4.78 between the upper band of 4.88 and the lower band of 3.97 of the Bollinger Bands (BB).<\/span><\/p>\n
![\"Bitcoin](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/10\/glassnode-studio_bitcoin-stablecoin-supply-ratio-ssr-6.png\")
<\/a><\/p>\nSource: Glassnode<\/p>\n<\/div>\n
Volatility could explode if whales\u2026<\/h3>\n
What this means is that <\/span>volatility<\/span><\/a> around Bitcoin\u2019s price is decreasing while buying power is increasing. Should market participants go all in on buying BTC, then the volatility level may change from contraction to expansion.<\/span><\/p>\n
Meanwhile, Bitcoin\u2019s 30-day Market Value to Realized Value (MVRV) ratio was 7.25% at press time. The MVRV ratio is defined as an asset\u2019s market cap divided by the realized capitalization. By comparing these values, investors can have an idea about the period of fair value, or undervaluation<\/span><\/p>\n
At the said value, the metric <\/span>revealed<\/span><\/a> that the coin\u2019s recent performance has produced good gains for its holders. Still, the market may not be deemed extremely heated at the moment, especially considering how long BTC\u2019s price has stayed below $30,000 on the charts.\u00a0<\/span><\/p>\n
- Bitcoin can gain from greater stablecoin whale supply<\/em><\/li>\n<\/ul>\n
![\"Bitcoin](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/10\/Bitcoin-BTC-12.47.48-21-Oct-2023.png\")