Negative Netflow

Definition ∞ Negative Netflow signifies that more of a specific asset is leaving exchanges than entering them. This metric indicates a net outflow of cryptocurrency from centralized exchanges to private wallets or decentralized platforms. A sustained negative netflow often suggests that investors are moving assets for long-term holding, staking, or use in decentralized finance applications, rather than preparing to sell. This trend can signal a reduction in available supply on exchanges, potentially contributing to upward price pressure.
Context ∞ Negative Netflow is a closely watched on-chain metric frequently reported in crypto news, offering insights into investor sentiment and potential market trends. Discussions often link significant outflows to accumulation phases by long-term holders or institutional interest. This data provides valuable context for understanding supply dynamics and future price expectations for various digital assets.