Historical Data Suggests Volumes Bottom This Week
Aug 29, 2024
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Lower Volumes Persist
Earlier this week, we witnessed approximately $2B in open interest being unwound within a matter of hours—a significant forced deleveraging event for an otherwise uneventful Tuesday, lacking a clear catalyst.
In our view, the selloff was largely technical and indicative of the negative seasonality we've been discussing recently. To backtrack, Monday and Tuesday followed a dovish Fed pivot at Jackson Hole, sparking a sharp rally in soft-landing plays like IWM and KRE—BTC included.
However, by Tuesday, this rally had lost steam. With substantial leverage b...