Definition ∞ Exchange net pressure quantifies the overall directional movement of capital into or out of cryptocurrency exchanges. It is determined by analyzing the difference between total asset inflows and total outflows over a specific period. Positive net pressure indicates an accumulation of assets on exchanges, potentially signaling an intent to sell. Negative net pressure suggests withdrawals, often implying a holding strategy or movement to cold storage.
Context ∞ News reports frequently reference exchange net pressure to gauge investor sentiment and potential short-term price movements in the crypto market. A sustained increase in net inflow can be interpreted as a bearish signal, while consistent net outflow may suggest bullish expectations. This metric provides insight into the collective behavior of market participants.
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