Analysis: The demand indicator for purchasing Bitcoin stablecoins once soared to 3.74, approaching the peak in November 2024

CryptoQuant analyst Zizcrypto stated that the Stablecoin Supply Ratio Oscillator (SSR Oscillator) 90-day reading quickly rose to the "strong stablecoin buying demand" zone, reaching 3.74 on August 21, close to the peak of about 4 expected in November 2024. Since then, the indicator has started to decline, while BTC is currently trading around $77,000.

The rapid rebound of the stablecoin demand indicator coincided with a strong liquidity pulse that occurred earlier in the market. However, what is more concerning now is not the short-term spike itself, but whether this demand signal can be sustained. If the 90-day SSR Oscillator continues to decline and falls back below the "high" zone, the confirmation strength of this indicator regarding the sustained increase in stablecoin buying demand will weaken. Currently, this change appears more like a liquidity pulse rather than a formed persistent demand expansion cycle.

The demand signals from the stablecoin side have indeed strengthened significantly recently, but the 90-day oscillation indicator has already started to cool down from its peak of 3.74. If it cannot maintain itself in the "high" zone, then whether this liquidity improvement can evolve into more lasting demand growth remains in question.