Exchange Netflow Shift

Definition ∞ Exchange netflow shift represents a change in the net movement of digital assets onto or off cryptocurrency exchanges. A positive netflow indicates more assets moving onto exchanges, potentially signaling selling pressure, while a negative netflow suggests assets moving off, often interpreted as accumulation or long-term holding.
Context ∞ Monitoring exchange netflow shifts provides valuable insight into market sentiment and potential price movements for digital assets. Significant outflows can suggest investor confidence and a reduction in immediate selling supply, whereas sustained inflows might precede increased market volatility or price corrections.