Bitcoin News Today: Bitcoin Stagnant Amid 3.72% Stablecoin Surge, SSR Hits 18.8

Bitcoin's price has shown minimal movement in recent weeks, with the Bitcoin Stablecoin Supply Ratio (SSR) emerging as a potential explanation for the market's consolidation. The SSR, which compares Bitcoin's market capitalization to the supply of stablecoins, has risen significantly, indicating a disparity between stablecoin issuance and their utilization in trading activity. This imbalance may be stifling Bitcoin's upward momentum despite a surge in stablecoin creation [1].

Stablecoins, particularly Tether (USDT), saw a 3.72% increase in supply in July 2025, adding nearly $8 billion in liquidity. However, approximately $5.7 billion of this capital was withdrawn from exchanges during the same period, leaving it inactive. This dynamic has created a lopsided market environment where stablecoin minting outpaces usable liquidity, limiting the capital available to drive Bitcoin's price higher [2]. The SSR, which measures Bitcoin's value relative to stablecoin supply, climbed from 9.39 to 10.48 by mid-July, highlighting the reduced availability of stablecoin liquidity compared to Bitcoin's market cap.

The recent peak in Bitcoin’s price, which briefly reached $123,000, coincided with the SSR’s rise, suggesting the rally may have been constrained by insufficient stablecoin deployment. Analysts note that the $5.7 billion in net stablecoin outflows observed in July have reinforced risk-averse behavior among investors, who have opted to hedge positions rather than reinvest in Bitcoin. This trend underscores a broader reluctance to commit capital to volatile assets amid ongoing macroeconomic uncertainties [3].

The implications of this liquidity gap are evident. With stablecoins accumulating in low-risk reserves rather than fueling trading activity, Bitcoin's price has remained range-bound. The current SSR level of 18.8—where Bitcoin’s total value is 18.8 times the supply of stablecoins—indicates a temporary market saturation, as noted by crypto analytics firm CryptoQuant. This suggests that unless stablecoin liquidity returns to exchanges and the SSR declines, Bitcoin’s consolidation phase is likely to persist, capping its potential for further gains [1].

Bitcoin's price, which dipped below $115,000 on July 12, has since stabilized around $118,800. The lack of significant price movement aligns with the broader market sentiment, where investors are prioritizing caution over aggressive trading. Analysts suggest that a decline in the SSR would signal increased stablecoin inflows, potentially setting the stage for the next leg of Bitcoin’s rally. However, this scenario hinges on renewed risk appetite and a shift in how stablecoin liquidity is deployed [3].

The interplay between stablecoin supply and Bitcoin’s price dynamics highlights the critical role of liquidity in cryptocurrency markets. As stablecoin creation continues to outpace active trading capital, the SSR serves as a key indicator of market equilibrium—or imbalance. For Bitcoin to break out of its current range, analysts emphasize the need for stablecoin liquidity to return to exchanges, reducing the SSR and providing the necessary fuel for further price appreciation [2].

Sources:

[1] [Bitcoin Remains Flat—And The SSR Ratio Might Explain Why](https://www.newsbtc.com/bitcoin-news/bitcoin-flat-and-ssr-ratio-might-explain-why/)

[2] [Stablecoins are minting but not moving - Is crypto liquidity drying up?](https://ambcrypto.com/stablecoins-are-minting-but-not-moving-is-crypto-liquidity-drying-up/)

[3] [Glassnode analysis](https://www.glassnode.com/)