What Are Exchange Flows?
Exchange flows track the movement of cryptocurrency between private wallets and exchange wallets. Inflows are deposits to exchanges (coins moving to exchange addresses), while outflows are withdrawals from exchanges (coins moving to private wallets).
How Exchange Flows Work
When large amounts of crypto flow into exchanges, it typically signals intent to sell — holders are positioning their coins for market orders. When crypto flows out of exchanges, it suggests accumulation — holders are moving coins to cold storage for long-term holding. The net flow (inflows minus outflows) provides a real-time supply/demand signal.
Why It Matters for Traders
Exchange flows are one of the most actionable on-chain metrics. Sudden large inflows from whale wallets often precede sell-offs. Sustained outflows during accumulation phases confirm smart money buying. Tracking exchange reserves (total coins held on exchanges) gives a macro view of available sell-side supply.