Bitcoin Inflow

Definition ∞ Bitcoin inflow represents the movement of Bitcoin into a specific exchange or wallet address. This metric indicates a net increase in the quantity of Bitcoin held within a particular platform or custodian. It often suggests a potential for selling pressure, as assets moved to exchanges might be intended for trade or liquidation. Monitoring these movements offers insights into market sentiment and supply dynamics.
Context ∞ Significant Bitcoin inflows to exchanges frequently feature in cryptocurrency market analysis, signaling potential short-term price volatility. Analysts often observe these trends to predict shifts in investor behavior or market direction. The correlation between large inflows and subsequent price adjustments is a subject of ongoing study among traders. Understanding this metric is vital for interpreting market movements reported in financial news.