Besides the potential impact of a stablecoin market boom on the traditional sectors, there is also the significant effect such an amount of liquidity would have on the crypto market, especially Bitcoin. A renowned crypto journalist has come forward with how the Bitcoin price would react to a soaring stablecoin market value.
In the post on X, Romano highlighted the Stablecoin Ratio Channel (SRC) that indicates sustained bullish or bearish conditions based on changes in stablecoin supply. This metric suggests that shifts in stablecoin supply could precipitate significant market movement over extended periods.
The SRC (Long-Term) removes short-term noise by applying a 90-day Relative Strength Index (RSI) to the Stablecoin Supply Ratio (SSR) oscillator and smoothing it with a 7-day EMA. For context, SSR is calculated as the ratio between the Bitcoin supply and the supply of stablecoins.
As of this writing, the price of BTC stands at around $103,550, reflecting an almost 1% decline in the past 24 hours.
