Definition ∞ An off-exchange withdrawal describes the movement of digital assets from a centralized cryptocurrency exchange to a user’s private wallet or another platform not controlled by the exchange. This action typically indicates a user’s intention to hold assets for the long term, participate in decentralized finance, or secure their funds independently. It removes assets from the immediate trading liquidity of the exchange.
Context ∞ News frequently monitors large off-exchange withdrawals as a potential indicator of shifting market sentiment or impending price movements. Significant outflows can suggest a decrease in selling pressure or increased confidence in self-custody. Conversely, large inflows to exchanges might signal a desire to sell. This metric provides insight into investor behavior and market dynamics.
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