The Stablecoin Ratio Channel indicates Bitcoin's potential growth, driven by stablecoin market cap expansion and logarithmic forecasting models.
Market Opportunities from Stablecoin Ratio Channel
According to Alphractal, the current oscillator value is close to the lower dotted green line on the Stablecoin Ratio Channel (SRC) chart. Historically, this level has often indicated market bottoms. The Stablecoin Supply Ratio (SSR) is a ratio of Bitcoin's market cap to the total stablecoin market cap. If the SSR is low, this implies that there is substantial buying power with stablecoins relative to Bitcoin. Bitcoin's price has often rebounded when the SRC has dipped to or below the 'oversold' zone. The current oscillator is nearing this level yet again. However, a major buying signal hasn't occurred yet, but market conditions are lining up for entry, as noted by Alphractal.
Stablecoin Market Cap Growth and Bitcoin Price Consolidation
Alphractal also presents a chart showing Bitcoin's price and the overall market cap of stablecoins. As of late March 2025, the stablecoin market cap exceeds $150 billion and continues to grow due to new issuances and conversions from altcoins. Historically, when Bitcoin's price stagnates, stablecoin supply increases, preceding a market rally. USDT still holds the largest share in the stablecoin market, followed by USDC and DAI. Currently, Bitcoin's price is consolidating around $82,000 while stablecoin supply increases. This setup has historically led to price increases when accumulation ends, and capital returns to risk assets.
Logarithmic Growth Model and Price Prospects
Meanwhile, CryptoAtlas shared a rainbow chart illustrating Bitcoin's long-term price trend with a logarithmic regression model. The model predicts that the next target could be as high as $269,000 after each halving event peak. After the 2016 halving, the model aligned with previous market tops at $13,000, and after the 2020 halving at $67,000. Historical patterns suggest that major price increases occur 12-18 months after the next halving, which happened in April 2024.
Current market indicators, such as the Stablecoin Ratio Channel, expanding stablecoin markets, and logarithmic models, point towards potential Bitcoin price growth. With these factors in place, Bitcoin may be at the beginning of another significant rally.
