LMAX Digital volumes cooled off on Tuesday. Total notional volume came in at $321 million, 12% below 30-day average volume.

Bitcoin volume printed $134 million, 31% below 30-day average volume. Ether volume came in at $109 million, 27% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,086 and average position size for ether at $2,857.

Volatility has been trending back down to yearly low levels. We’re looking at average daily ranges in bitcoin and ether of $3,054 and $121 respectively.

There’s been a notable surge in demand today, with no immediately identifiable catalyst. The move unfolded within minutes, raising questions as to whether this marks the beginning of something more meaningful in terms of recovery.

Crypto assets have been heavily pressured in recent months and overdue for a technical bounce. Still, given the abrupt nature of the rally and the absence of a clear trigger — particularly against the backdrop of thinner liquidity conditions — the advance should be treated with caution.

That said, it was refreshing to see a dose of relative outperformance. Digital assets have lagged equities and precious metals for much of the past several months, so even a brief stretch of strength stands out.

For sentiment to shift more constructively, however, we would need to see a daily close in bitcoin and ETH back above $66,600 and $1,950 respectively. Absent that, rallies risk being classified as corrective.

Over the past 24 hours, stabilization in U.S. equity futures and a modest pullback in Treasury yields appear to have helped fuel short covering across higher beta segments, including crypto.

At the same time, positioning data suggests the market had built up a meaningful tactical short bias, leaving it vulnerable to sharp squeezes on limited headlines.

ETF flow dynamics continue to act as an important barometer of underlying institutional demand, though there has been no major flow catalyst driving Wednesday’s move.

On the geopolitical front, markets remain attentive to ongoing tensions in Eastern Europe and the Middle East, as well as uncertainty around the U.S. policy outlook heading into the next round of fiscal negotiations.

Any renewed volatility in energy prices or a material shift in central bank rhetoric could quickly reassert pressure on risk assets.

For now, the bounce in crypto is technically constructive, but without confirmation through key resistance levels and stronger macro tailwinds, it is premature to declare a durable turn in trend.