Deposit Outflows

Definition ∞ Deposit outflows refer to the withdrawal of funds by users from a financial institution or digital asset platform. This movement of capital typically indicates a reduction in user confidence or a response to shifting market conditions. It can also signal changes in investment preferences among participants.
Context ∞ Significant deposit outflows from cryptocurrency exchanges or decentralized finance (DeFi) protocols are closely monitored as an indicator of market health and platform stability. Such movements often follow security incidents, regulatory announcements, or periods of high market volatility, affecting investor perception and asset prices. News coverage frequently analyzes these trends to assess the risk exposure of various platforms and the broader sentiment within the digital asset market.