Definition ∞ Exchange Inflow Loss describes a situation where the volume of cryptocurrency flowing into centralized exchanges significantly decreases over a period. This reduction suggests that fewer assets are being moved to exchanges for potential sale or trading. It can indicate a reduction in selling pressure or a preference among holders to retain their assets in private wallets. A sustained loss of exchange inflows often signals increasing holder conviction.
Context ∞ News reports often cite exchange inflow loss as a bullish indicator, suggesting that market participants are less inclined to sell their holdings. Analysts interpret this trend as a sign of decreasing supply available for immediate sale, potentially leading to price appreciation. This metric provides valuable insight into the supply-side dynamics of digital assets and overall market sentiment. It helps contextualize shifts in investor behavior and potential market direction.
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