What is the Stablecoin Ratio Channel? 

The Stablecoin Ratio Channel tracks the ratio between Bitcoin’s market cap and the supply of stablecoins. This ratio is used to assess market liquidity and investor risk appetite. The short-term version of the SRC is sensitive to sudden changes in Bitcoin’s price and indicates whether selling pressure is increasing. 

What Do Short-Term Indicators Say? 

According to Alphractal, the short-term version of the SRC currently signals increasing selling pressure. This coincides with Bitcoin facing strong resistance in the $113,000–$114,000 range. Investors appear to be shifting from BTC to stablecoins at these levels. 

Long-Term Outlook 

On the other hand, the long-term SRC indicator is only halfway through its cycle. In past market cycles, this level typically signaled healthy corrections in bull markets and selling pressure in bear markets. According to the long-term version of the SRC, Bitcoin is still in the middle of a bull cycle. The trend has not yet reached its peak. Therefore, Alphractal analysts interpret the current situation not as negative but as a potential reaccumulation phase. 

According to CryptoQuant data, Bitcoin’s Exchange Stablecoins Ratio has risen to 5.3. This means that BTC reserves on exchanges are five times higher than stablecoin reserves, suggesting that potential selling pressure may outweigh buying pressure. 

According to Alphractal’s analysis, there is increasing short-term selling pressure on Bitcoin (BTC). However, long-term indicators suggest we are still in the middle of a cycle, and these levels have historically signaled healthy corrections. 

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