In the recent video, widely-followed crypto channel Altcoin Daily shares with their subscribers the key indicators showing that capital is beginning to flow back to the cryptocurrency market.
El Salvador giving each citizen $30 in BTC
The Central American country will give U.S. $30 worth of Bitcoin to each adult citizen that downloads and registers on the country’s new cryptocurrency app, Chivo. Bitcoin will become legal tender in El Salvador on September 7,
“The $30 promotion is the nation’s latest effort to push adoption of Bitcoin as legal currency”, says Altcoin Daily.
“And remember, this BTC cannot be ‘freshly printed”.
Key indicator shows capital beginning to flow back into Bitcoin
The crypto channel then cites the stablecoin supply ratio (SSR) oscillator to show a recovery in a sign of renewed capital inflow into bitcoin.
The stablecoin supply ratio (SSR) is the ratio of the bitcoin supply and the stablecoin supply denoted in BTC.
“When the ratio is low, the buying power for bitcoin is high, as the same amount of USD can buy relatively more BTC. Conversely, a high ratio means fiat has weak buying power”.
Altcoin Daily takes an example of bitcoin’s previous bull runs, including the one seen in the final quarter of 2020 that kicked off with a below -2 reading on the oscillator. So, the recent recovery could be a signal of an impending change of fortunes for bitcoin and broader crypto markets.
“The Stablecoin Supply Ratio Oscillator bottomed and has been trending up in recent weeks, indicating that capital has been flowing back from stablecoins into Bitcoin”.
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