OnChain College
BTC Stablecoins & Exchange Reserve Update
Let's keep it simple and look at macro supply & demand on exchanges for both Bitcoin and Stablecoins. The BTC: All Exchanges Stabelcoins Ratio (USD) divides the BTC reserve by the stablecoins reserve. Low levels could indicate buy pressure. We're currently at levels lower/comparable to the Sept. '21 price drop and throughout the Summer '21 price drop (pic 1). Price was around $30k during Summer '21 & around $40k in Sept '21. We're now around $50k but at the same stablecoin ratio level. Zooming out (pic 2), we can see this ratio has been in a macro downtrend since the March '20 crash. We can see (pic 3) that it is because the supply of stablecoins has been increasing, but we also know the exchange reserves of BTC have been decreasing (pic 4) since the March '20 crash. Keeping it simple- -BTC exchange supply macro down -Stablecoin exchange supply macro up -Stablecoin ratio at levels from price crashes earlier this year Macro bullish in my opinion