hey everyone and thanks for jumping back into the crypto today we're going to talk about Bitcoin and we're going to be discussing the stablecoin supply ratio oscillator if you guys like the content make sure you subscribe to the channel give the video a thumbs up and check out the sale on into the cryptoverse premium at intothe cryptoverse decom where you can of course get access to this indicator let's go ahead and jump in so again we're going to keep this video short and sweet um but the stable coins play ratio oscillator or ssro for sure
is an interesting metric because occasionally it gets these spikes up to around 3 or four it's done a number of times this Market cycle did it a couple of times last Market cycle as well one of the things you note is that whenever I gets that Spike even though it it'll top here the market can continue to go higher for a while even after the ssro tops you can see it did it in 2019 it did it in 2021 it even did it over here um in in 2023 right it topped there but the market
continued to go up for a little while um as it came back down and then got another rally up here as it came back down and then in 20 late 2023 right it spiked up came back down here and then it sort of had a double top right so this cycle so last cycle we didn't really get these sort of like these double tops but this cycle it's been all about the double Tops on the ssro where you sort of get your first Spike and then a low and then a second one right again here
your first Spike and then a sort of a move back down and then a second Spike and then you could argue that we're potentially seeing the same thing again right where you have the first Spike the price goes slightly higher same thing happened last year at this time and then eventually Bitcoin got another move up but if you look here at the ssrl when it actually got a move up it was uh back then the SS Ro had gone all the way back down to 0.53 right right now it's at 1.23 now I probably should
have done this at the beginning of the video but I didn't but if you're curious what it is here's a description of the ssro and how you can you use it um but essentially it can be the stable coin Supply ratio so this is not the oscillator this is just the ratio is equal to bitcoin's market cap divided by the stable coin market cap so that is is just the um this thing the SSR right so it's this so again it's equivalent to the ratio of the Bitcoin Supply and the stable coin Supply denoted um
in Bitcoin its motivation is to quantify the extent of stable coin buying power and estimate it its potential to move the price of Bitcoin so that's the reason why it's interesting is because we're trying to figure out the the sort of the potential of if you you know if you studyed physics right you think of like you know potential energy right but it's it's the the potential of the stable coin Market to move uh the price of Bitcoin so when when the oscillator is high then you know that the potential to move the price a
lot higher isn't there as much because you know there's just not the relative thep of coin Supply there's just not as much uh to make it go higher when it's low though like when you see it lower down here uh then you could argue it it has you know a better chance of of really starting to move it move the market durably in in another Direction but we also talked about this indicator uh a few months ago back when it was down here in September and noted that this was the same level that it had
bounced at um you know previous in previous uh downturns right you can see here it bounced at the same level in January 2022 it also bounced at that same level in October of 2019 so the we have seen it Go lower than that but in order to really go lower than than this number right here you need a much larger selloff right like sort of like a 50% selloff or more to really get it down uh to those levels and you can see it has gone down to those levels before like June of 2022 and
and may of 2021 and March 2020 but it doesn't go down there very often also December 2018 but anyways that's the the stable coin display ratio oscillator I know it's a bit of of an exotic metric that most people don't really care about but look it's just one tool add to the tool kit use it for Confluence with a lot of other things thank you guys for tuning in subscribe give the video a thumbs up and again check out the sale on ITC premium I'll see you guys next time bye
