Systemic Net Liquidity (Macro Fuel for Crypto & Stocks)

This indicator tracks Systemic Net Liquidity, the single most important macro factor for determining the long-term trend of risk assets like Bitcoin (BTC) and major indices (S&P 500). It measures the amount of actual cash available in the financial system to chase speculative assets, distinguishing between money that is circulating and money that is locked up at the Federal Reserve.
​Mechanism (What It Measures)
​The script uses direct data from the FRED (Federal Reserve Economic Data) to calculate the true state of market funding:

\text{Net Liquidity} = \text{Fed Assets (WALCL)} - \text{Treasury General Account (TGA)} - \text{Reverse Repo (RRP)}

1. Fed Assets (WALCL): The total balance sheet of the Fed (The overall supply of money).
​2. Treasury General Account (TGA): Funds the US Treasury collects via bond issuance. When the TGA rises, liquidity is actively drained from the banking system (A major bearish pressure).
​3. Overnight Reverse Repo (RRP): Cash parked by banks and money market funds at the Fed, effectively frozen and not contributing to market activity.
​How to Interpret Signals
​Treat the Net Liquidity line as the market's "Fuel Gauge":
​📈 BULLISH SIGNAL (Liquidity Injection): When the Net Liquidity line is rising, money is flowing back into the system, signalling a tailwind for risk assets.
​📉 BEARISH SIGNAL (Liquidity Drain): When the line is falling (often due to high TGA balances), cash is being removed. This signals major friction and pressure on price action.
​⚠️ DIVERGENCE WARNING: A strong signal is generated when Price (e.g., BTC) rises, but Net Liquidity falls. This macro divergence strongly suggests a major trend reversal or correction is imminent.
​Important Notes
​Data Source: Data is directly sourced from FRED and updates daily/weekly. This tool is best used for macro analysis and identifying high-level cycles, not short-term scalping.
​Disclaimer: Use this indicator as a confirmation tool within your broader strategy. It is not a standalone trading signal.