In recent developments, Bitcoin’s price and demand metrics are showcasing a potential resurgence in market interest, hinting at the possibility of reaching a new all-time high. The cryptocurrency has made a remarkable price recovery, surging past the $70,000 mark after a prolonged phase of resistance just below this threshold. Over the past 24 hours, Bitcoin has experienced a 5% increase, pushing it to a trading level of $71,933 at the time of writing.
Factors Fueling Bitcoin’s Price Rally
One significant factor contributing to this upward trend is the increased demand, as evidenced by stablecoin movements. This metric is frequently used to assess market sentiment and potential buy-in for Bitcoin. CryptoQuant analyst BinhDang recently highlighted this in a post on the CryptoQuant QuickTake Platform.
Stablecoin Supply Ratio Oscillator: A Demand Surge Indicator
BinhDang pointed out that the Stablecoin Supply Ratio Oscillator (SSRO) has reached levels reminiscent of Bitcoin’s lows, particularly those observed in November 2022. Since Bitcoin bottomed out in November 2022, the 90-day and 200-day oscillators have recorded lows similar to that bottom during Q3 2024.
The SSRO tool evaluates the ratio of Bitcoin’s market cap to that of major stablecoins like USDT, USDC, and BUSD, serving as a barometer for assessing Bitcoin’s demand relative to stablecoin supply. The oscillator measures the extent to which stablecoins, often used for Bitcoin purchases, are being converted into Bitcoin, thereby indicating purchasing interest. When the oscillator registers low values, as it did during Bitcoin’s November 2022 low, it suggests that stablecoins are more likely to be converted into Bitcoin, thus boosting demand. This demand surge has propelled Bitcoin past the $70,000 mark, sparking investor optimism and speculation about potential future highs.
New Bitcoin ATH On The Horizon?
According to BinhDang, Bitcoin could maintain its upward momentum if demand remains steady and aligns with positive macroeconomic data or upcoming election forecasts. BinhDang noted:
“The SSRO indicates high demands on the average quarterly data set (90d), surpassing the positive 2-points. If demand continues to sustain and upcoming announcements in early November include favorable macro and election data, a move to and break above the positive 3-points is feasible.”
The analyst observes that a rise above the SSRO’s positive three-point level has historically aligned with robust bullish cycles in previous periods, particularly in January 2023, October 2023, and February 2024. Despite Bitcoin’s consistent price increases over recent days, nearly reaching $72,000 today, the digital asset’s daily trading volume has been following a similar trajectory.
Notably, data from CoinGecko reveals that over the past week, Bitcoin’s 24-hour trading volume has climbed from below $35 billion, as seen last Tuesday, to a peak of $51.6 billion.
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