Key facts:
The metric was developed by Glassnode, a startup focused on analysis of data in the string.The indicator measures the ratio of the supply of 7 stablecoin, with the circulating bitcoin.Specialists in data analysis of the ecosystem of the cryptocurrencies developed a new metric that quantifies the purchasing power that they have over bitcoin (BTC) the stablecoin or tokens anchored to the price of the american dollar and its influence the price of the main criptomoneda. The indicator, called the “ratio of the supply of stablecoin” (SSR), was presented by the startup Glassnode, this Tuesday 3 December.The firm, which focuses on the analysis of the movements of the market cryptocurrencies on the basis of data of the respective chains of blocks, said on his Twitter account that the SSR allows to infer potential changes in the price of bitcoin. In addition, they argue that the indicator “can be understood as a ‘proxy’ of the mechanics of supply and demand between bitcoin and the us dollar”.In a more extensive explanation published on its official blog, the analysts Glassnode pointed out that the development of the new metric is based on the premise that, in the market of cryptocurrencies, the stablecoin work as a substitute for the dollar, trust us. That’s why we qualify it as a “proxy variable”, a term which in statistics is used to identify an item correlated strongly with the other great interest of study, in this case, USD.
With its dominant role as the main vehicle to enter and exit positions in Bitcoin, (the stablecoin) have corroborated its role as a proxy of the fiat currency between the traders. Therefore, it is evident that play a crucial role in the supply / demand dynamic of the criptomercados, which has a direct influence on the price of Bitcoin.Glassnode.
In the construction of the SSR, its creators Renato Shirakashi and Rafael Schultze-Kraft, analysts of the firm, used an indicator they call the “purchasing power of bitcoin”. This is the capacity of the total supply of stable currencies to buy Bitcoin, and encourage an increase in its price. The calculation of the supply of stablecoins, includes seven tokens following: tether (USDT), TrueUSD (TUSD), USD Coin (USDC), Paxos Standard (PAX), Gemini dollar (GUSD), DAI and Synthetix USD (SUSD).Analysts say that the metric SSR quantifies the extent of the buying power to move the price of bitcoin. As you point out, if the price of bitcoin is low, the supply of stablecoin is able to purchase a greater amount of circulating BTC (buying power high) and raise the price. On the contrary, if the price of bitcoin is high, the same amount of stablecoin will buy less BTC (buying power low), which would stimulate a potential decline in prices.The value of SSR can be interpreted as the amount of supply of BTC that can be bought with the supply of existing stable currencies. Source: Glassnode in MediumUsuarios on the social network Twitter commented on some of your observations on the usefulness of the new metric. From the account of Atmos Black, it was said that the selection of stablecoin used by the creators of the metric, it does not seem to be adequate. “Lack most of the satablecoin large cap and also all of the larger volume,” says the tweet.For its part, the account Vulture”s Pick is of the opinion that the stablecoin alone does not explain the dynamics of the market of bitcoin. Argue that the pair BTC/USDT only represents 40%, according to data from CoinMarketCap.As reported Breaking News, the impact of stablecoins as a tether on the price of bitcoin has been the subject of discussion by the analysts. In this issue, some analysts argue that there is a clear correlation between the fluctuations of the price of bitcoin and the rate of emission of USDT. However, others argue that this correlation is close to “zero”.