Definition ∞ Bitcoin exchange outflow refers to the movement of Bitcoin from cryptocurrency exchange wallets to external, typically self-custodied, addresses. This action suggests a reduction in immediate selling pressure on exchanges. It often indicates a preference among holders for long-term storage rather than short-term trading. Such movements can reflect changing investor sentiment regarding market stability or future price appreciation.
Context ∞ News reports often highlight significant Bitcoin exchange outflows as a bullish market signal, implying accumulation by long-term holders. Analysts monitor this metric closely to gauge market sentiment and potential supply shocks. A consistent outflow trend can precede periods of price appreciation, impacting overall market dynamics.
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