LMAX Digital volumes were up big on Monday. Total notional volume for Monday came in at $520 million, 63% above 30-day average volume.

Bitcoin volume printed $256 million on Monday, 47% above 30-day average volume. Ether volume came in at $173 million, 87% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,370 and average position size for ether at 2,919.

Volatility has been trending lower, back down to the lowest levels since earlier this year, after peaking out at a yearly high in March. We’re looking at average daily ranges in bitcoin and ether of $812 and $55 respectively.

The crypto market has taken a hard hit over the past 24 hours, in the aftermath of the news around SEC action against Binance. There are two key takeaways here with respect to the latest wave of liquidations.

The first is the takeaway around what type of impact this news will have on Binance as a major player in the space. We’ve already seen the type of fallout capable from debacles in 2022, and a result in which Binance can no longer operate would open the door for a bigger fallout.

The second takeaway is around the cryptocurrencies the SEC has mentioned in the lawsuit, which opens up the door for what could be a clearer indication the SEC feels that many cryptocurrencies are in fact securities. This is also resulting in downside pressure in the market as participants fear such a move will cripple forward progress in the space.

Having said that, it would be foolish to jump the gun, and it would be foolish to assume all of this comes as a surprise. We have had many indications that this would be the path forward at the SEC, and players in the space have had opportunities to anticipate and adapt.

We do need to see a clearer regulatory framework. But the market is also justified in demanding a clearer regulatory framework that understands the space, so as not to create a regulatory framework that ultimately makes it impossible for crypto to grow into the asset class it deserves to be.

On this note, the recent McHenry-Thompson draft proposal crypto bill that outlines a clearer delineation of authority between the SEC and the CFTC is a refreshing development. We are hopeful that this sets a more productive tone as we march forward and grow what is still a very small asset class into a more mature, safe, respected market.

Technically speaking, bitcoin and ether are still trending higher, both up +50% YTD despite the latest declines. At the moment, any setbacks are viewed as corrective, with higher lows sought out ahead of the next major upside extensions back through the yearly highs.

We see bitcoin well supported in the $22k to $25k area, with only a break back below $20k to give reason for concern. We see ether well supported between $1,500 and $1,700, with only a break back below $1,400 to give reason for concern.