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Exchange Outflows

Definition

Exchange outflows refer to the net movement of digital assets from cryptocurrency exchanges to external wallets. This metric is closely watched by market observers as an indicator of investor sentiment and potential market direction. Significant outflows can suggest that investors are withdrawing assets for long-term holding (accumulation) or moving them to decentralized platforms, while inflows may signal intentions to trade or sell. Analyzing these movements provides insight into on-chain activity and holder behavior.