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Volatility Surge

Definition

A volatility surge signifies a rapid and substantial increase in the price fluctuations of a digital asset. This phenomenon indicates a period of heightened market uncertainty or significant trading activity, where asset prices experience large, unpredictable movements within a compressed timeframe. Such surges often correlate with major news announcements, macroeconomic shifts, or significant shifts in market sentiment. They represent a departure from typical price stability, presenting both opportunities and elevated risks for participants.