Definition ∞ Bitcoin Exchange Balance represents the total amount of Bitcoin held in wallets controlled by centralized cryptocurrency exchanges. This metric indicates the collective supply of Bitcoin readily available for trading on these platforms. A higher balance suggests greater liquidity and potential selling pressure, while a decreasing balance often implies investors are moving Bitcoin into personal storage for long-term holding.
Context ∞ Bitcoin exchange balance serves as a key on-chain indicator for market analysts assessing potential price movements and investor sentiment. A noticeable reduction in exchange holdings often correlates with periods of accumulation and bullish price outlooks, as fewer Bitcoins are immediately accessible for sale. Conversely, an increase might signal impending selling activity or reduced investor confidence, providing valuable context for understanding market trends reported in crypto news.
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