The claim that stablecoins have nothing to do with the Bitcoin bull market is completely baseless.
The first chart shows the Exchange Stablecoins Ratio (USD).
Bitcoin: Exchange StableCoins Ratio USD
All cryptocurrencies are in the numerator, and stablecoins are in the denominator.
So when crypto prices fall and stablecoins remain on exchanges, the blue line goes down.
Right now, this indicator is at the lowest level of the current 4th halving cycle.
Throughout this cycle, there were repeated claims that the bull season had ended early—but those claims were always wrong, and the market kept going.
This time, Bitcoin has been heavily suppressed in price, which pushed the ratio to cycle lows.
That means Bitcoin is deeply undervalued and a large amount of dollar liquidity is waiting on the sidelines.
The second chart shows the ratio by token count, not price.
Bitcoin Exchange Stablecoins Ratio
In terms of token count, the ratio is even more extreme and stuck at historic lows.
Again, all cryptocurrencies are in the numerator and stablecoins in the denominator.
This means there is a massive amount of stablecoin liquidity waiting to buy.
These on-chain indicators clearly suggest that this is not the end of the cycle,
but rather a bull market structure with significant upside liquidity waiting to enter.
Written by CoinNiel
