Definition ∞ Bank deposit outflow describes the movement of funds from traditional banking institutions. This phenomenon occurs when account holders withdraw or transfer their deposits. It represents a reduction in the capital held within the conventional financial system. Such outflows can be driven by various factors, including a search for higher yields or a loss of confidence in banks.
Context ∞ Bank deposit outflows are particularly relevant in crypto news as they can indicate a shift of capital into digital assets. When traditional financial systems face instability or offer low returns, individuals and institutions may seek alternative stores of value or investment avenues in the cryptocurrency space. This movement of funds often correlates with increased liquidity and interest in digital asset markets.
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