A centralized exchange deposit represents the transfer of digital assets from an external wallet into an account held on a centralized cryptocurrency exchange. This action typically precedes trading activities, such as buying or selling other digital assets. Such deposits increase the liquid supply of a particular asset available on the exchange.
Context
News reports often highlight large centralized exchange deposits as a potential indicator of impending selling pressure for a digital asset. A substantial inflow of assets to an exchange can signal that holders are preparing to liquidate positions. Analysts monitor these deposit trends closely to anticipate market volatility and price movements. This metric helps gauge the immediate supply dynamics within the broader digital asset market.
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