LMAX Digital volumes continued with their healthy performance this week. Total notional volume for Wednesday came in at $301 million, 12% above 30-day average volume.

Bitcoin volume printed $166 million, 14% above 30-day average volume. Ether volume came in at $53 million, 12% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $6,849 and average position size for ether at $1,137.

Volatility has turned up substantially off multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $2,419 and $89 respectively.

Crypto markets have been showing some encouraging signs of resilience, holding up relatively well in recent sessions despite a more challenging backdrop in traditional risk assets.

While we haven’t yet seen the type of sustained upside momentum needed to confirm a broader recovery, it has been notable to see crypto outperform equities on days when stock markets have come under meaningful pressure.

This is exactly the type of relative strength long-term investors are waiting for after an extended period of underperformance.

From a valuation perspective, the asset class continues to look increasingly compelling. Bitcoin has traded more than 50% below its late-2025 record high, while ETH has endured a drawdown of roughly 70% from its own peak.

Historically, these types of corrections have proven to be part of crypto’s cyclical nature rather than evidence of a broken investment thesis.

Indeed, no major asset class has repeatedly experienced such deep drawdowns before ultimately recovering to print fresh all-time highs, making the current environment look more like a familiar phase in the cycle than an unprecedented event.

At the same time, improving relative performance versus stocks raises the prospect of crypto increasingly standing on its own two feet as an investable asset class.

With equity valuations still elevated and geopolitical uncertainty clouding the outlook for traditional markets, Bitcoin in particular may continue to attract attention as a portfolio diversification tool.

At the same time, Ethereum’s growing role as the backbone for stablecoin activity and the tokenization of real-world assets adds another layer to the investment case, reinforcing the view that the network is evolving into critical financial infrastructure capable of benefiting from the ongoing convergence between traditional finance and blockchain technology.

The key test going forward will be whether crypto can consistently outperform irrespective of what stocks are doing, reinforcing the view that digital assets are evolving beyond simply being another high-beta expression of risk appetite.

Sentiment remains another supportive consideration. Bearishness across the space has become deeply entrenched following months of declines, which from a contrarian perspective is often the environment in which important lows are formed.

Markets rarely bottom when optimism is abundant; instead, turning points tend to emerge when investors become convinced that conditions will never improve.

A modest recovery in price action and a few sessions of sustained gains can quickly shift psychology, particularly in an asset class where momentum and narrative play such influential roles.

From a technical perspective, traders will be watching nearby resistance levels closely for confirmation that a broader recovery phase is underway.

A move back above $64,250 in Bitcoin and $1,720 in ETH would strengthen the case that accumulation is already beginning ahead of the next major leg higher.

More broadly, if historical post-halving patterns continue to hold, the current period may ultimately be remembered less as the end of the cycle and more as another opportunity to position ahead of the next push toward record highs.