@adamfox
Large wallet transfers into centralized exchanges often signal potential selling, but context matters. If inflows occur during thin liquidity, they suggest imminent sell pressure. Conversely, if coinciding with rising order book depth and stable funding, they may replenish market liquidity. To differentiate, monitor subsequent executed trades: if deposits are followed by actual selling within hours, it’s a prelude to liquidation. If balances remain idle, it may reflect collateralization or market-making. Statistical filters comparing deposit-to-trade conversion rates help classify whether flows are supply shocks or neutral provisioning.
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