According to the source, sharp BTC moves can coincide with simultaneous selloffs across crypto and equities, indicating periods when cross-asset correlation rises and risk appetite deteriorates. The source says traders should track three signals during BTC-led shocks to manage exposure: the correlation between BTC and major stock indices, volatility gauges that reflect stress transmission, and market liquidity conditions that can amplify price swings. The source adds that aligning stops, reducing leverage, and employing hedges around BTC-driven volatility can help mitigate portfolio drawdowns across both markets.