Definition ∞ Exchange inflow double signifies a substantial, often sudden, increase in the amount of cryptocurrency deposited onto exchanges. This metric indicates that the volume of a particular digital asset flowing into centralized exchanges has approximately doubled within a specific period, compared to its average rate. Such a sharp rise in inflows often suggests that a significant number of holders intend to sell their assets. It typically precedes heightened selling pressure and potential price volatility, as increased supply on exchanges can overwhelm buying demand.
Context ∞ Market analysts frequently monitor exchange inflow data as a leading indicator of potential price corrections or increased market liquidity for selling. A doubling of inflows usually signals a notable shift in short-term holder behavior, indicating a readiness to liquidate positions. The critical discussion revolves around whether these inflows represent profit-taking, panic selling, or a rebalancing of portfolios.
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