Definition ∞ Off-Exchange Accumulation describes the process where large quantities of digital assets are moved from centralized trading platforms to private, self-custodied wallets. This activity suggests that significant holders intend to retain their assets for an extended period rather than trade them immediately. It is often interpreted as a bullish signal, indicating a long-term conviction in the asset’s value.
Context ∞ Market analysts frequently track off-exchange accumulation as a key on-chain metric to gauge investor sentiment and potential future price movements. A sustained trend of assets moving off exchanges can indicate reduced selling pressure and a supply shock, which may precede upward price action. This phenomenon provides valuable insight into the strategic holdings of major market participants.
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