Indicator Overview

The Crypto Liquidity Flow indicator measures the short-term acceleration or deceleration of stablecoin supply growth by first calculating the year-over-year (YoY) percentage change in the combined market capitalisation of major stablecoins (primarily USDT and USDC), then subtracting the YoY value from 30 days prior to derive a momentum-adjusted “Flow Index.” This index is visualised as a dynamic histogram centred around a zero line, with adaptive gradient colouring (deep red for strong negative momentum indicating contracting liquidity, white at neutral, and vibrant green for positive momentum signalling expanding inflows), overlaid with Bitcoin’s price on a secondary logarithmic axis and optional SMA/EMA lines. The color scale and Y-axis automatically adjust to the visible timeframe for balanced symmetry, providing a macro view of changing liquidity trends that often lead broader market moves.

How To Use

Positive green histogram bars reflect accelerating stablecoin issuance momentum, historically preceding or confirming bull markets as fresh capital builds readiness for deployment into risk assets like Bitcoin and altcoins. Negative red bars indicate decelerating or contracting liquidity growth, frequently warning of risk-off periods, corrections, or cycle peaks as buying power wanes. The zero line acts as a key pivot: sustained moves above it signal constructive liquidity expansion ideal for bullish positioning, while drops below suggest caution. Traders use extreme green readings for entry conviction and red extremes for profit-taking or hedging. Optional SMA/EMA overlays help filter noise and confirm trend persistence. Investors interpret rising positive Flow Index values as a powerful macro tailwind supporting crypto rallies, while persistent negatives mark potential regime shifts, making this a critical gauge for assessing overall capital inflow dynamics and market cycle health.