Exchange Supply Decline

Definition ∞ Exchange supply decline refers to a reduction in the quantity of a specific digital asset held on centralized cryptocurrency exchanges. This metric indicates that fewer units of the asset are immediately available for trading. It suggests a shift in holder behavior towards long-term storage or use in decentralized protocols.
Context ∞ This trend is often interpreted as a bullish market signal in cryptocurrency news and analysis. A sustained decline in exchange supply can indicate reduced selling pressure and increased holding conviction among participants. It often precedes periods of price appreciation if demand for the asset remains constant or rises.