Definition ∞ An exchange inflow spike signifies a sudden and substantial increase in the volume of digital assets transferred onto centralized cryptocurrency exchanges. This rapid movement often suggests that a large number of holders are preparing to sell their assets. Such an event can precede heightened market volatility or price declines.
Context ∞ Cryptocurrency news frequently highlights exchange inflow spikes as a crucial on-chain metric for market analysis. A significant increase in assets moved to exchanges is often interpreted as a bearish signal, indicating a potential increase in selling pressure. Traders and analysts monitor these spikes to anticipate short-term market movements. Understanding these capital flows provides insight into prevailing market sentiment and investor behavior.
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