CryptoQuant on-chain analyst Maartunn flagged a sharp drop in the momentum of Bitcoin’s Stablecoin Supply Ratio (SSR), with the SSR’s Relative Strength Index (RSI) plunging to just 13 — an extreme “oversold” reading that signals stablecoin supply is large relative to Bitcoin’s market cap.
What the SSR and its RSI mean
- The SSR compares Bitcoin’s market capitalization to the combined market value of all stablecoins. Stablecoins act as “dry powder” for crypto markets: investors park funds in them to avoid volatility and later swap them back into BTC or other tokens.
- The SSR’s RSI is a momentum measure of that ratio. Readings below the usual oversold threshold (30) suggest the SSR has fallen rapidly; at 13, the indicator is well into undervalued territory and historically low compared with prior periods.
Why it matters
Maartunn posted the chart on X showing the multi-year trend and noted, “There’s a lot of stablecoin liquidity sitting on the sidelines relative to Bitcoin’s market cap.” The implication: a large pool of capital is available to buy crypto if holders choose to redeploy stablecoins into BTC, which could help stabilize or reverse recent losses.
Context: price and on-chain pain
The drop in SSR RSI comes amid a broader market pullback. Bitcoin has traded down to roughly $62,700 at the time of writing — nearly a 10% decline over the past week. Maartunn also pointed out in a separate X post that around 52% of BTC’s circulating supply is now “underwater,” meaning those coins are held at prices below their acquisition cost — a sign of widespread unrealized losses that can influence investor behavior.
Bottom line
The SSR RSI at 13 highlights a notable disconnect: substantial stablecoin liquidity sits on the sidelines while BTC’s market cap has retreated. That set-up can provide buying fuel if holders move to redeploy stablecoins, but it also coincides with elevated on-chain distress as many BTC holders sit in loss. Traders and analysts will be watching whether that dormant liquidity turns into demand or remains parked until broader market confidence returns.
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