Exchange Shutdown Index monitors whether BTC outflows from an exchange have ceased within a given period, flagging potential disruptions to withdrawal functionality. A value of 1 indicates no outflow was recorded; a value of 0 confirms normal withdrawal activity.
Isolated instances of a value of 1 may reflect low-activity periods or brief technical pauses and are not inherently alarming. However, a sustained sequence of 1s - particularly when exchange inflows or trading activity remain active - is a significant risk signal, historically associated with exchanges freezing withdrawals ahead of insolvency events, regulatory actions, or operational failures.
Monitoring this index alongside reserve and netflow data provides an early warning layer for custodial risk, making it a critical metric for anyone holding assets on centralized exchanges.
