Large Wallet Netflow

Definition ∞ Large wallet netflow refers to the aggregate movement of digital assets into or out of cryptocurrency wallets holding substantial amounts of tokens. This metric provides insight into the actions of whales or institutional investors, indicating their accumulation or distribution patterns. Significant net inflows suggest buying pressure, while net outflows imply selling pressure.
Context ∞ Analysts closely monitor large wallet netflow as a proxy for institutional sentiment and potential market movements, particularly for major cryptocurrencies like Bitcoin and Ethereum. Sudden shifts in these flows can precede significant price volatility, offering a leading indicator for market participants. The transparency of on-chain data allows for direct observation of these influential movements.