Bitcoin’s recent surge may be running on limited fuel as on-chain data highlights a steady rise in the Stablecoin Supply Ratio (SSR), a key metric that measures the liquidity available to support further price growth.
This upward movement in the SSR which compares Bitcoin’s market capitalization to that of all stablecoins indicates that while Bitcoin’s price is climbing, the growth in stablecoin reserves is not keeping pace. As a result, concerns are growing about the rally’s long-term sustainability.
Since stablecoins serve as fiat equivalents in the crypto ecosystem, they are essential for maintaining trading momentum. When the SSR is low, it signals strong buying power, meaning there is sufficient liquidity in the market to support asset purchases. However, a rising SSR points to tighter liquidity conditions, with fewer stablecoins available relative to Bitcoin’s value.
Given this imbalance, the market appearsto be relying more on recycled capital rather than fresh inflows. Although Bitcoin’s upward trajectory continues, the stagnation in stablecoin supply suggests the rally may be reaching its limits unless new liquidity enters the system.
As analysts closely track these liquidity trends, they caution that Bitcoin’s momentum could slow unless stablecoin reserves expand significantly in the near term. The current rise in SSR reflects a potential saturation point, where existing liquidity is no longer enough to sustain aggressive buying.
At the same time, traders are watching for broader signals of market strength, particularly as Bitcoin hovers near record highs. Without a meaningful injection of new capital especially from stablecoins the market could encounter growing resistance.
Adding to this narrative, recent on-chain analysis from CryptoQuant contributor Darkfost points to a new wave of upward momentum for Bitcoin. This is being partially driven by weakening U.S. dollar conditions and a noticeable shift in investor sentiment, further complicating the liquidity outlook. The U.S. Dollar Index (DXY), a key benchmark of dollar strength, is currently trading 6.5 points below its 200-day moving average, marking the largest downside deviation in over 21 years.
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