Digital Asset Outflows

Definition ∞ Digital asset outflows represent the movement of cryptocurrencies or other digital tokens away from exchanges or investment vehicles. These movements often signal a reduction in selling pressure or a shift in investor sentiment, as assets are transferred to personal wallets or alternative platforms. Significant outflows can indicate a preference for self-custody or redeployment into other digital asset opportunities.
Context ∞ Analyzing digital asset outflows provides crucial insight into broader market trends and investor behavior. A sustained period of outflows from centralized exchanges may suggest a reduction in immediate selling intent or a move towards longer-term holding strategies. This metric is closely watched by market analysts to gauge market health and potential future price movements.