Bitcoin net flow quantifies the total movement of Bitcoin into or out of centralized exchanges over a specific period. This metric represents the difference between the amount of Bitcoin deposited onto exchanges and the amount withdrawn from them. A positive net flow indicates more Bitcoin entering exchanges, while a negative net flow signifies more Bitcoin leaving. It provides an indication of investor sentiment and potential market activity.
Context
Bitcoin net flow is a key on-chain indicator frequently cited in market analysis to gauge short-term market sentiment. A sustained positive net flow often suggests increased selling pressure or a desire to trade, as assets are moved to exchanges. Conversely, a negative net flow frequently implies accumulation and a preference for holding, as assets are moved to personal wallets, reducing immediate selling availability. Traders and analysts closely monitor these trends for insights into potential price movements.
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