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Market Flows

Definition

Market flows refer to the movement of capital into and out of specific assets, sectors, or overall financial markets. In digital asset markets, these flows can be tracked through on-chain data, exchange volumes, and stablecoin issuance, indicating investor sentiment and liquidity shifts. Significant inflows typically suggest increasing demand and upward price pressure, while outflows often signal selling pressure or reduced investor confidence. Understanding these movements is critical for analyzing market momentum and price discovery for cryptocurrencies.