Data on stablecoins indicates that the Bitcoin bullish trend is far from over.

After a tumultuous start to the year, Bitcoin seems to have begun to regain its growth momentum, soaring 31.41% in Q2, after falling 11.82% in Q1 of 2025.

This strong recovery has raised an important question for investors: Will the Bitcoin bull market continue, or are we nearing its end?

Stablecoin: A new factor shaping the bull cycle

In a recent post on platform X, Joao Wedson, founder and CEO of Alphractal, highlighted three important indicators related to stablecoin: Stablecoin Supply Ratio (SSR) Oscillator; Stablecoin Ratio Channel Long-Term View and Stablecoin Ratio Channel Short-Term View. Wedson asserted that these indicators provide optimistic signals, opening up promising investment opportunities.

"There are no indicators among these suggesting an overbought condition, which means that Bitcoin ( and other cryptocurrencies ) may continue their upward trend in the coming months."

The SSR Oscillator acts as a "compass" for the market, measuring the market capitalization of Bitcoin against the total market capitalization of stablecoins. This index is smoothed through a 200-day moving average and standard deviation. Recent data from Alphractal shows that the SSR Oscillator has not yet reached the sell signal level, indicating that Bitcoin still has room for continued growth. This indicator is particularly useful for identifying buying opportunities when Bitcoin is undervalued compared to the available liquidity from stablecoins, or conversely, warning when the market is overheating.

In addition, the Stablecoin Ratio Channel also helps to analyze more deeply from both long-term and short-term perspectives.

Long-Term View helps investors identify buying opportunities when Bitcoin is reasonably priced compared to the liquidity of stablecoins, while also warning about overvaluation.

Short-Term View, with higher frequency fluctuations, is suitable for trend trading strategies and provides momentum signals for short-term changes. The recent "buy" signals, especially from the beginning of 2025, further reinforce confidence in the ongoing growth cycle.

According to data from Coinglass, the 31.08% recovery of Bitcoin in the second quarter of 2025, along with the 37.04% increase of Ethereum, reflects the strength of the cryptocurrency ecosystem.

However, it cannot be denied that there are still potential risks. The dependence on stablecoins may be affected by changes in global regulations, especially as countries like the United States and the EU may tighten regulations. Nevertheless, the outlook remains very bright thanks to low interest rates, and the U.S. Treasury predicts that the stablecoin market could reach a value of up to $2 trillion.

Taylor