₿itcoinIQ
Transparency

Our Methodology

A transparent explanation of how BitcoinIQ works, our data sources, and the principles behind our multi-indicator approach to cycle analysis.

₿itcoinIQOur Philosophy

BitcoinIQ is built on a simple premise: no single indicator tells the whole story. By combining macro, on-chain, and sentiment indicators, we provide a more complete picture of where we are in the Bitcoin cycle.

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Macro Context

Global Liquidity, Fed Policy, ISM - the macro backdrop

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On-Chain Data

MVRV, SOPR - holder behavior and profit/loss dynamics

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Market Structure

Dominance, Fear & Greed - sentiment and capital flows

We don't predict specific prices or dates. Instead, we help you understand the current environment and identify when conditions are historically favorable or unfavorable for Bitcoin.

Data Sources

We use only reputable, verifiable data sources. All data is fetched server-side and pre-calculated for fast page loads:

Federal Reserve Economic Data (FRED)

Fed balance sheet, Treasury General Account, Reverse Repo, M2 money supply, FX rates

Bank for International Settlements (BIS)

Cross-border bank credit totals (interpolated to monthly from quarterly)

BGeometrics

MVRV Z-Score and SOPR on-chain metrics

Alternative.me

Crypto Fear & Greed Index (daily sentiment data)

CoinGecko

Bitcoin price, market cap, and dominance data

Institute for Supply Management (ISM)

ISM Manufacturing PMI for business cycle analysis

Update Frequency

Daily Updates

  • • Bitcoin Price
  • • Fear & Greed Index
  • • Bitcoin Dominance
  • • MVRV Z-Score
  • • SOPR

Monthly Updates

  • • Global Liquidity
  • • Fed Liquidity
  • • Fed Policy Regime
  • • ISM Manufacturing PMI

Note: Monthly macro indicators are released with a lag (typically 2-4 weeks after month end). This is normal for economic data and doesn't affect the indicator's usefulness for cycle analysis.

Key Calculations

Global Liquidity

GL = Fed Liquidity + Central Bank Balance Sheets + Global M2 + Cross-Border Credit

Aggregates liquidity from Fed, ECB, BOJ, PBOC, and 10+ other central banks, converted to USD using historical FX rates.

Fed Liquidity

Fed Liquidity = Fed Balance Sheet - Reverse Repo - Treasury General Account

Measures actual liquidity available in the financial system after accounting for drains.

Rate of Change (RoC)

3-Month RoC = Linear regression slope × 100 (% per month)

Uses linear regression over 3 months to calculate trend momentum, matching the ~75-day lag between GL and Bitcoin.

Understanding the Bitcoin Macro Cycle

Explore the macro forces that drive Bitcoin cycles — from liquidity conditions to business cycle timing

#Macro IndicatorDescription
1Global LiquidityMacro backdropMacro backdrop
└Fed Policy & US LiquidityUS-focused (more volatile)US-focused (more volatile)
2ISMBusiness cycleBusiness cycle
3GL + ISMCombined macro phasesCombined macro phases
4Macro Cycle IndexWhere we are now and what to doWhere we are now and what to do
📚EducationFull cycle analysis guideFull cycle analysis guideHERE

Limitations & Disclaimers

  • •Not Financial Advice: BitcoinIQ is for educational purposes only. We don't recommend specific trades or investments.
  • •Historical Correlation ≠ Future Prediction: Past indicator performance doesn't guarantee future results.
  • •Data Limitations: Our Global Liquidity calculation may differ from professional estimates due to data source limitations (shadow banking, eurodollar markets).
  • •Timing Uncertainty: Indicators identify favorable/unfavorable conditions but don't predict exact tops or bottoms.
  • •Black Swan Events: Unexpected events (regulatory changes, hacks, macro crises) can override indicator signals.

Research Credits

Our methodology is inspired by and builds upon the work of respected researchers:

  • Michael Howell (CrossBorder Capital) - Global Liquidity framework and Bitcoin correlation research
  • Raoul Pal (Real Vision) - Macro-crypto thesis and liquidity-driven investment framework
  • Glassnode - Pioneering on-chain analytics methodology (MVRV, SOPR concepts)

Explore Our Indicators

© 2025 BitcoinIQ. All rights reserved. Raise your BitcoinIQ - use Cycle Intelligence to your advantage

NOT INVESTMENT ADVICE

BitcoinIQ provides educational content and analysis tools for informational purposes only. This is not investment, financial, or trading advice. Cryptocurrency investments are highly volatile and risky. Always do your own research and consult with qualified financial advisors before making investment decisions. Past performance does not guarantee future results.