Large Holder Netflow

Definition ∞ Large Holder Netflow refers to the aggregate movement of assets into or out of cryptocurrency wallets controlled by significant investors, often called whales. A positive netflow indicates accumulation, suggesting these large holders are acquiring more assets. Conversely, a negative netflow suggests distribution or selling pressure from these influential entities. This metric offers insight into the sentiment and actions of major market participants.
Context ∞ Large holder netflow is a closely watched on-chain metric frequently cited in crypto news to gauge market sentiment and predict price shifts. The current discussion often involves distinguishing between various types of large holders, such as institutions versus individual whales, to refine predictive models. A critical future development is the use of advanced analytics to disaggregate and interpret these flows with greater precision, providing a more nuanced understanding of market dynamics.