Spot Exchange Flows

Definition ∞ Spot exchange flows in cryptocurrency refer to the movement of digital assets onto and off centralized exchanges for immediate trading at current market prices. Inflows represent assets moving onto exchanges, potentially indicating an intent to sell, while outflows signify assets moving off exchanges, often for storage or long-term holding. These flows provide insights into market sentiment and supply dynamics.
Context ∞ Monitoring spot exchange flows is crucial for understanding real-time market activity and potential price movements. High inflows can signal increased selling pressure, leading to price declines, whereas sustained outflows often suggest accumulation and reduced selling pressure, which can support price appreciation. These flows reflect the collective actions of market participants, influencing liquidity and price stability.