Key Takeaways: Bitcoin's Stablecoin Supply Ratio RSI has dropped to 13, the lowest on record, suggesting ample dry powder for a potential rebound.
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Bitcoin SSR RSI drops to 13 as stablecoin liquidity builds for rally
Bitcoin's Stablecoin Supply Ratio RSI has dropped to 13, the lowest on record, suggesting ample dry powder for a potential rebound.
Bitcoin's SSR RSI dropped to 13 on June 9, the lowest on record, as stablecoin supply grew relative to BTC market cap, CryptoQuant data shows.
"A low SSR RSI reading suggests there is significant stablecoin liquidity available relative to Bitcoin's market capitalization, which historically has preceded upward price movement," Maartunn, an analyst at CryptoQuant, said.
The SSR measures the ratio of Bitcoin's market cap to the total stablecoin supply. A reading of 13 on the RSI indicates stablecoins are abundant relative to BTC's valuation at current prices. The metric has reached extreme levels before, with prior instances in 2020 and February 2026 preceding BTC rebounds of 50% and 30%, respectively, according to CryptoQuant. Bitcoin traded near $61,500 as of 14:00 UTC on June 9, down roughly 30% from its all-time high of $126,000 in October 2025, CoinGecko data shows.
The setup comes as Bitcoin's daily RSI also touched 15.5, its most oversold reading since the March 2020 COVID crash, TradingView data shows. A decisive hold above $60,000 support could open the path toward the 20-day exponential moving average at $70,650, while a break below that level risks a deeper drop toward the mid-$50,000s.
$2.6B Short Squeeze Trap Sets Up Above $63,000
Over-leveraged short positions built up between $63,000 and $66,000 have created a potential $2.6 billion squeeze trap for bears, CoinGlass data shows. Bitcoin's perpetual futures funding rate has turned negative to minus 2%, indicating that long positions have fully deleveraged and reducing the risk of further downside liquidation cascades.
The short buildup follows a brutal month for Bitcoin, which saw $5.1 billion drain from US spot Bitcoin ETFs over a record 15-day outflow streak, SoSoValue data shows. A minor $3 million inflow on June 5 offered a brief reprieve, though it remains too early to declare a trend reversal.
Short-term holders are realizing their largest losses on record, with the realized profit/loss ratio dropping to an all-time low, according to Checkonchain data cited by crypto analyst Scott Melker. Roughly 5.3 million Bitcoin held by long-term holders is now underwater, the highest level since the March 2020 COVID crash.
The 50% drawdown from Bitcoin's $126,000 all-time high is the shallowest bear market in the asset's history, compared with 90% in 2012 and 74% in 2022, CryptoQuant data shows. Analysts at Presto Research argued that Bitcoin's weakness reflects competition from gold and AI stocks as investors reassess Federal Reserve rate-cut prospects, suggesting a rebound may hinge on easing inflation concerns.
If stablecoin liquidity begins rotating into Bitcoin, the combination of oversold conditions, record short positioning, and ample dry powder could fuel a sharp recovery. The $70,650 level at the 20-day EMA represents the first major test for any upside move.
This article is for informational purposes only and does not constitute investment advice.
[1] Bitcoin Stablecoin Ratio Drops To Extreme Low—What It Means For BTC[2] Bitcoin most oversold since 2020 crash: Can BTC rebound to $70K next?[3] This is Bitcoin's Shallowest Bear Market—But is the Bottom In?[4] Bitcoin briefly drops below $62,000 as $1.5 billion in crypto longs get wiped out[5] Bitcoin bears face $2.6B trap as BTC funding rate drops: Is a short squeeze brewing?
