Stablecoins Sitting Out as Gold Rallies — Bitcoin Liquidity Pauses, Not Exits
CryptoQuant analysis shows Bitcoin liquidity remains intact despite a strong rally in gold and other precious metals. On-chain metrics — notably the Stablecoin Supply Ratio (SSR) — indicate capital is largely parked in stablecoins rather than having rotated decisively into gold. SSR currently reads ~12.57, down from highs near 18–19, placing it in a neutral zone (10–15) that signals latent buying power but not active deployment. The report argues large allocators typically keep multi-asset exposure, so gold’s strength does not imply Bitcoin sell-offs funded metals purchases. Price action: BTC has failed to reclaim short- and mid-term moving averages and trades below the 50- and 100-day MA, while the 200-day MA remains above $100,000. Volume spikes have accompanied sell-offs; recovery attempts show muted volume, keeping downside risk active. Key technical levels: immediate demand around $86,000–$87,000; a breakdown risks lower supports, while holding keeps BTC in consolidation. Implications for traders: watch SSR for shifts in latent buying power, monitor moving averages for reclaiming momentum, and treat current weakness as cautious consolidation rather than capitulation.
Neutral
The news points to stalled liquidity rather than capital flight from crypto, which is a neutral signal for market direction. SSR at ~12.6 indicates substantial stablecoin buying power remains available — a bullish latent factor — but price action shows BTC below key short- and mid-term moving averages with sell-volume dominating rallies, which is bearish. Historically, similar setups (stablecoin liquidity high while price consolidates under moving averages) preceded both sustained recoveries when a catalyst arrived and deeper corrections when demand zones failed. Short-term impact: cautious trading — elevated downside risk until BTC reclaims moving averages or SSR drops into <10 signaling active deployment. Long-term impact: structural liquidity remains (not exhausted), so a decisive macro or on-chain catalyst could trigger a strong rebound. Traders should use SSR, volume, and MA crossovers together to time entries and manage risk.