Definition ∞ Bitcoin flow refers to the movement of Bitcoin tokens between different addresses, exchanges, or wallet types on the blockchain. Analyzing these movements helps observers understand market sentiment, accumulation trends, and potential selling pressure. It provides data on how capital is being allocated across the Bitcoin network.
Context ∞ Bitcoin flow is a critical on-chain metric often analyzed in cryptocurrency news to gauge market activity and participant behavior. Significant movements from exchanges to cold storage may indicate accumulation and a bullish outlook, while large transfers to exchanges often precede selling events. Understanding these flows aids in assessing market health and potential price direction.