Definition ∞ Bitcoin supply flow refers to the movement of Bitcoin between different types of addresses or market entities. This metric tracks the quantity of Bitcoin being transferred from miners to exchanges, from long-term holders to short-term speculative addresses, or into various decentralized finance protocols. It offers insight into the current liquidity available for trading and the potential selling pressure or accumulation patterns occurring within the network. Significant shifts in supply flow can signal impending market movements.
Context ∞ Crypto news reports regularly analyze Bitcoin supply flow to predict market trends and understand investor behavior. An increase in Bitcoin moving to exchanges might suggest a rise in selling pressure, while movement into cold storage could indicate accumulation. The present focus involves distinguishing between genuine market activity and internal transfers by large entities to accurately gauge supply dynamics.
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