Supply outflow refers to the movement of a cryptocurrency away from a specific type of address, such as exchange wallets or mining pools, to other destinations, often private wallets or decentralized finance protocols. This indicates a reduction in the immediately available selling supply on exchanges. It often suggests a shift towards holding or staking behavior. This trend can reduce market liquidity.
Context
News reporting on significant supply outflow for a digital asset can be a bullish indicator, suggesting reduced selling pressure and potential future price appreciation. It provides context for understanding shifts in investor behavior, moving from short-term trading to long-term accumulation. This metric helps assess the supply dynamics influencing an asset’s market value.
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