Supply Transfer

Definition ∞ Supply transfer refers to the movement of digital assets between different types of addresses or market participants, such as from exchanges to cold storage, or from inactive wallets to active trading accounts. This movement provides insight into shifts in investor behavior, liquidity, and potential future market dynamics. It indicates changes in holding patterns.
Context ∞ News reports often analyze supply transfer data to gauge investor sentiment and anticipate market shifts. A transfer of assets from exchanges to private wallets might signal long-term holding intentions, while transfers to exchanges could indicate impending selling pressure. Monitoring supply transfers offers valuable context for understanding changes in market structure and participant strategies.