A market indicator showing that more cryptocurrency is being withdrawn from centralized exchanges than is being deposited. This metric suggests that investors are moving their assets off exchanges, often into self-custody or long-term storage. A sustained downward trend in exchange netflow typically indicates a reduced immediate selling pressure. It can signal a bullish sentiment, as fewer assets available on exchanges may precede price appreciation.
Context
Analysts frequently cite exchange netflow data in crypto news to gauge market sentiment and predict potential price movements for digital assets like Bitcoin. A consistent decrease in exchange balances is often interpreted as accumulation by long-term holders, removing supply from active trading. Monitoring this metric provides insight into investor confidence and strategic positioning within the digital asset market.
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