Definition ∞ Double normal inflow describes a situation where the amount of a particular digital asset flowing into exchange platforms is twice its typical average rate. This elevated inflow suggests a significant increase in selling pressure or a preparation for potential market liquidity events. It often precedes price volatility as more assets become available for trade.
Context ∞ Analysts monitor double normal inflow events closely as they can serve as a strong bearish signal in cryptocurrency markets. A sustained increase in exchange deposits can indicate that a large number of holders intend to sell, potentially leading to downward price movements. This metric provides insight into short-term supply dynamics and investor sentiment.
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