Stablecoins forks would make the price of Bitcoin rise quickly

At USD 11,400, Bitcoin (BTC) is poised for another price increase as stablecoin investors buy cheap currencies, the data suggests.
Highlighting the latest readings of its stable currency supply ratio (SSR) metric on August 26, the Glassnode on-chain monitoring resource predicted a rise for BTC/USD.

Stablecoins supply ratio „3 times stronger“ than in July 2019

SSR refers to the potential purchasing power of stable currencies over Bitcoin. A low Bitcoin price allows owners of stable currencies, for example, in exchanges, to buy more of the BTC supply. This demand drives up the price of Bitcoin, given its predictable and verifiable supply and its high stock-to-flow ratio.
Tether reaches a market capitalization of $10 billion
As the price increases, stable currencies, which remain the same price in any fiduciary currency to which they are linked, may purchase less of the BTC supply.
The ability to enter into a BTC position is called „purchasing power“. Currently, that purchasing power is high, which means that owners of stable currencies can buy a comparatively large amount of the supply.
„SSR is 3 times stronger than when BTC reached these price levels more than a year ago,“ said Glassnode.
Tether outperforms Paypal and Bitcoin in average daily transfer value
In another tweet, the firm noted that the largest stable currency, Tether (USDT), was remarkably well prepared to enter such positions.
„The additional support comes from an increase in the USDT balance (ERC20) in exchanges over the past year, indicating that stable currencies are waiting on the sidelines.

Bitcoin stablecoin supply ratio comparative chart

Comparative table of Bitcoin’s stable currency supply ratio. Source: Glassnode/Twitter
Tether holders waiting to enter BTC?
As reported by Cointelegraph, Tether’s market capitalization exceeded a $10 billion milestone in July. In terms of average daily transfer value, USDT exceeded both Bitcoin and PayPal this month.
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Tether market cap vs. Bitcoin price
Market capitalization of Tether versus the price of Bitcoin Source: CryptoQuant
One reason to increase the supply and therefore the market capitalization of a stable currency is to allow investors who bought other assets to withdraw cash. As Glassnode explained in a blog post on SRH last December, an increase in the price of BTC, for example, requires more stable currencies.
„The resulting lack of liquidity in the supply of stable currencies makes it difficult for investors to exit in profitable positions,“ the post summarizes, concluding:
„To compensate for the lack of purchasing power as the price of Bitcoin increases, new fiat money needs to flow into the market, i.e. the supply of stable currencies needs to increase.