Whale Net Flow

Definition ∞ Whale net flow tracks the aggregate movement of digital assets into or out of exchanges by large holders, often referred to as “whales.” A positive net flow indicates whales are depositing assets onto exchanges, potentially signaling an intent to sell. A negative net flow suggests whales are withdrawing assets, which could indicate long-term holding or movement to cold storage. This metric provides insight into the actions of significant market participants.
Context ∞ On-chain analytics platforms and crypto news outlets frequently report on whale net flow as a key indicator for predicting short-term market movements. Significant shifts in this metric can precede periods of increased volatility or price corrections. Traders and analysts closely monitor whale activity to gauge market sentiment and anticipate potential supply or demand changes.