GlossaryStablecoin Supply Ratio (SSR)
Stablecoin Supply Ratio (SSR)
The Stablecoin Supply Ratio (SSR) sets Bitcoin's market cap against the market cap of all US dollar stablecoins. The study shows it as a smoothed Z-score: how far the ratio currently sits above or below its own mean of the last 200 periods, measured in standard deviations.
How to read it
| Zone | Range |
|---|---|
| Extremely high | from +4 σ |
| Overbought | +2 to +4 σ |
| Neutral | −2 to +2 σ |
| Oversold | −4 to −2 σ |
| Extremely low | below −4 σ |
Reference lines sit at ±2 and ±4 σ, and the zero line is emphasized. Above +2 the pane has a reddish background, below −2 a greenish one.
- High: Bitcoin's market cap has grown faster than stablecoin capital. A dollar in stablecoins buys less of the market than it did recently, and the “dry powder” is scarce in relative terms. That is the overbought reading.
- Low: A lot of stablecoin capital faces a comparatively low Bitcoin valuation. A lot of potential buying power is ready, the oversold reading.
Tip Read extremes as a sign of a stretched situation, not as an entry point. A Z-score above +2 can persist for a long time in a strong rally. Combine the study with a read on the trend.
Good to know
- The study is available only on the Bitcoin chart.
- Intended for the daily chart. The window counts candles: on the weekly chart it spans 200 weeks. On hourly charts, the same daily value stands across 24 candles; the window then covers only a little over eight days and the line becomes a staircase.
- Stablecoins aren't only waiting for Bitcoin purchases. They also serve as collateral in trading, in DeFi and in payments. A high balance is therefore no guarantee of demand.