Timestamp: May 19, 2021 The Stablecoin Supply Ratio (SSR) is an on-chain analysis metric, calculated as: SSR = “Bitcoin Market Cap” / “Total Stablecoin Supply” In simple terms, it measures the ratio of Bitcoin’s market cap relative to the market cap of all major stablecoins (like USDT, USDC, DAI, etc.). SSR primarily reflects the potential purchasing power of stablecoins in relation to Bitcoin: 1. Purchasing Power Strength (Supply and Demand) • Stablecoins are often seen as the “reserve ammo” or liquidity pool of the crypto market. • SSR attempts to quantify how much impact these “ammo” could have on Bitcoin’s price if fully deployed. 2. Market Sentiment and Trend Analysis • Lower SSR = Strong purchasing power: When the ratio decreases or is at a low level, it means the supply of stablecoins is large relative to Bitcoin’s market cap. This indicates ample off-market funds with enough “purchasing power” to push Bitcoin’s price higher, often seen as a bullish or bottom signal. • Higher SSR = Weak purchasing power: When the ratio increases or is at a high level, it means Bitcoin’s market cap is already very high relative to stablecoins. At this point, the market’s subsequent buying power is relatively insufficient, and the price may struggle to sustain or face a pullback, often seen as a bearish or overheated signal. 3. SSR is often displayed alongside Bollinger Bands. When SSR touches or breaks above the upper band, it’s usually marked as “overheated”; when it touches or falls below the lower band, it may indicate purchasing power is at a historical high.