LMAX Digital volumes were light on Tuesday. Total notional volume came in at $202 million, 32% below 30-day average volume.

Bitcoin volume printed $95 million, 50% below 30-day average volume. Ether volume came in at $50 million, 6% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,761 and average position size for ether at $1,261.

Volatility continues to consolidate off multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $2,204 and $79 respectively.

The crypto market is facing its first meaningful test following a healthy recovery from this year’s lows, with recent price action offering an early gauge of whether a more durable bottom is beginning to take shape.

While renewed volatility has interrupted the rebound, the broader recovery remains intact for now, and the market continues to look for confirmation that demand is strong enough to absorb periods of macro-driven risk aversion. Ethereum remains a particularly important barometer, with investors watching closely for evidence that participation is broadening beyond Bitcoin and into the wider digital asset ecosystem.

The latest bout of weakness has been driven less by crypto-specific developments and more by a deterioration in the global macro backdrop. Renewed US military action against Iranian targets has lifted geopolitical uncertainty, supporting the US dollar and encouraging a more defensive tone across global markets.

At the same time, higher Treasury yields and expectations that the Federal Reserve will maintain a restrictive policy stance have tempered appetite for risk assets, with cryptocurrencies trading in line with broader shifts in global sentiment.

Despite these headwinds, the market has so far shown encouraging resilience. One of the most constructive characteristics of any emerging bull cycle is not how markets perform during rallies, but how they behave when challenged by adverse news.

If crypto can continue to absorb these macro shocks without revisiting or materially breaking below this year’s lows, it would strengthen the argument that longer-term investors are becoming increasingly willing to accumulate on weakness and that a more sustainable recovery is beginning to emerge.

Looking ahead, attention now turns to the release of the latest Federal Reserve minutes, which could inject another round of volatility as investors refine expectations around the future path of US monetary policy under Chair Kevin Warsh. Beyond that, developments in the Middle East, the direction of the US dollar and global liquidity conditions are likely to remain key macro drivers for digital assets.

Even so, with Bitcoin, Ethereum, and the broader crypto market having already endured substantial corrections from their late-2025 record highs, the longer-term investment case remains compelling as institutional adoption continues to deepen and crypto increasingly establishes itself as a distinct asset class capable of delivering meaningful portfolio diversification over time.