Chart of the Week The Divergence That Explains Everything Nominal global liquidity sits near all-time highs at approximately $187.5 trillion. Bitcoin is at $71,000, down from $122,000 in October. On the surface, that looks like a model failure. It isn't. It's the model working correctly. From April through October 2025, Bitcoin and global liquidity moved together. Liquidity rose. Bitcoin rose. Since October, they have decoupled. The headline number kept climbing to new highs. Bitcoin collapsed. The distinction is between the level of liquidity and its rate of change. Bitcoin reprices to the rate of change of advanced-economy liquidity, not the nominal pool. When Western liquidity contracts while Eastern liquidity holds steady, the total rises but the capital reaching Western financial markets declines. China's PBoC continues injecting at approximately $850 billion annually, but that liquidity flows overwhelmingly toward gold through official reserve accumulation, not toward Bitcoin or Western risk assets. This is the bifurcation the market hasn't fully priced. The pool is vast. Its movement has stalled. The level tells you there's a floor. The rate of change tells you there's no impulse above it. This week's full analysis is on Substack.