On-chain stablecoin outflows can serve as a leading indicator of capital flight from risky assets. When investors move funds from volatile cryptocurrencies to stablecoins, it often signals risk aversion, as stablecoins provide a safe haven. Large outflows from exchanges or DeFi protocols to stablecoin holdings may precede broader market sell-offs, reflecting a shift to liquidity or fiat off-ramps. Historical data, like significant USDT or USDC transfers during market downturns, supports this trend. However, outflows alone aren’t conclusive—context, such as market sentiment, macro events, or regulatory news, must be considered. Monitoring stablecoin flow patterns, especially spikes in wallet inflows or exchange reserves, offers valuable insights into potential de-risking behavior.