What is a global liquidity index?

The core of a liquidity index is central-bank balance sheets — the total assets a central bank holds. Rising assets mean the bank has put money into the system. From that, you subtract the "drains": cash parked in reverse repo, and money sitting in a government’s account rather than circulating.

Because those numbers are in different currencies, each is converted to US dollars using exchange rates, so a euro balance sheet and a yen balance sheet can be added together honestly.

Once every source is in dollars, they are summed into a single figure — the pool of central-bank liquidity, in trillions. That raw figure is then smoothed, and can be shown as a rate of change rather than a level, which is often the more useful way to compare it to a fast-moving asset like Bitcoin.

BIKENZO computes this on its own servers from public data. The exact make-up — which balance sheets, which drains, how they are weighted — is its own construction and is not published, but the terminal always shows whether the index is connected and withholds the line rather than showing it incomplete.

A number in trillions is abstract on its own. Laid over the Bitcoin price, it becomes a picture: the tide of money beneath the asset. You can shift it forward to compare the lead-lag against the Bitcoin price and measure moves in percent — but it remains a lens on public data, not a forecast.