After the cryptocurrency markets toned down, several on-chain metrics turned towards the bears. But this week has been relatively stable not just for Bitcoin but also for several altcoins. Alongside, the renewed positive, several metrics have aligned with the bulls.
According to the blockchain intelligence platform, Glassnode, more buying power has been observed that are gearing up to flow into Bitcoin and other crypto-assets. This was revealed by BTC’s Stablecoin Supply Ratio [SSR] which has been on a steady decline since the start of 2021 as more stablecoins are minted which indicated a large supply of stablecoins relative to BTC.
Glassnode describes SSR as a ratio of the total value of all Bitcoins vs. stablecoins. SSR often tumbles when the price of BTC is low or when more stablecoins are entering circulation. Furthermore, it is noteworthy that SSR is so low even as the crypto-asset maintains high prices demonstrates just how many new stablecoins have forayed the ecosystem in recent times.
To top that, many of these newly minted stablecoins are being deposited onto crypto exchanges, which further stood testament to the fact that they are highly liquid and ready to purchase assets such as BTC.
Expert Opinion: Willy Woo is highly bullish on Bitcoin. He went on to say that the market has completed “a full purge of overheatedness”. He added once selling begins, the selling pressure would create more sellers taking their profits while it’s still there. The popular statistician also asserted.
“Profit-taking has now completed. We can see this in the SOPR chart below. When SOPR touches the 1.0 line, coins moving between investors no longer carry profit.”
Adding to the fever was Bitcoin transfer activity which climbed to a fresh ATH as the network reported an astonishing 22.3 million active BTC Addresses in the month of January this year.
This coincided with Bitcoin trade volumes soaring to record levels in the same month as the crypto-asset surged past $30,000 for the first time ever and post subsequent ATH above $42,000 before entering a multi-week range-bound consolidation.