Definition ∞ Exchange reserves decline refers to a reduction in the total amount of a specific cryptocurrency held in wallets controlled by centralized exchanges. This trend suggests that investors are moving their assets off exchanges, often into personal wallets for long-term holding or staking. A sustained decline can indicate a decrease in immediate selling pressure. It implies a shift towards a holding strategy.
Context ∞ News highlighting an exchange reserves decline for a digital asset often signals a bullish market sentiment. It suggests that fewer assets are readily available for sale, potentially leading to supply scarcity and upward price pressure. This metric provides valuable context for understanding investor behavior and anticipating market movements.
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