Recent data show a marked uptick in transaction volume coinciding with sharp price declines. The most notable spike, around a 227M move in late August, landed directly on the troughs, painting a clear picture of panic selling as investors exited positions.
In times of heightened volatility, such volume spikes can amplify short-term losses and spur rapid shifts between assets. Traders should monitor liquidity and bid-ask spreads, as crowded exits often precede periods of relief rallies. While volume alone cannot predict long-term trends, the pattern underscores risk inherent in the current market environment and highlights the importance of disciplined risk management for both retail and institutional participants.
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