At $ 11,400, Bitcoin (BTC) is ready for a new price hike as stable Bitcoin investors buy cheap coins, the data says.

Monitoring supplier Glassnode, highlighting the latest metrics from the Stable Supply Ratio (SSR) scale on Aug.26, predicts an uptrend for BTC / USD.

The share of currency supply is stable “3 times stronger” than it was in July 2019
SSR indicates the potential purchasing power of the stablecoin versus Bitcoin. The lower Bitcoin price allows Bitcoin stable owners, for example on exchanges, to purchase more BTC supply. This demand is driving Bitcoin prices up significantly due to its predictable and verifiable supply and a high inventory-to-flow ratio.

As the price goes up, it can buy the stablecoin, whose price remains the same in the fiat currency in question, less than the BTC bid.

The ability to take a BTC position is known as ‘buying power’. This purchasing power is currently high, which means that stable coin owners can purchase a relatively large portion of the supply.

Glassnode commented: “SSR is three times stronger than it was a year ago when BTC reached this price level.”

In another tweet, the company indicated that the largest stable currency, USDT, was clearly poised to take such positions.

“More support comes from an increase in USDT (ERC20) stocks on the exchanges last year – an indication that stable currencies are about to come.”

Lanyard holders waiting for BTC entry?
As Cointelegraph reported, Tether’s market cap exceeded $ 10 billion in July. In terms of average daily transfer value, USDT outperformed Bitcoin and PayPal this month.

One reason to increase the supply, and thus market value, of a stable currency is to allow investors who have purchased other assets to benefit from it. For example, as Glassnode explained in a blog post on SSR last December, increasing the price of BTC requires more stable currencies.

“The resulting liquidity shortage in the supply of stable coins makes it difficult for investors in profitable positions to exit,” the article summarizes and concludes:

“In order to compensate for the lack of purchasing power when the bitcoin price rises, new paper money must flow into the market, that is, the supply of stable currencies must increase.”

Source: CoinTelegraph

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