LMAX Digital volumes cooled off on Wednesday after an impressive run. Total notional volume came in at $201 million, 1% below 30-day average volume.

Breaking it down per coin, bitcoin volume came in at $71 million, 32% below 30-day average volume. Ether volume came in at $32 million, on pace with 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $5,475 and average position size for ether at $1,365.

Volatility has risen sharply following the market’s breakout from an extended period of subdued trading. We’re looking at average daily ranges in bitcoin and ether of $2,167 and $92 respectively.

Bitcoin remains confined to a tight consolidation following the recent surge, allowing highly extended daily overbought readings to cool.

This sideways trade could persist for a few more sessions, but setbacks should now be limited, with the May high just below $83,000 representing the next major resistance point.

The broader backdrop remains constructive, supported by renewed institutional demand and a meaningful return of inflows into US-listed spot bitcoin and Ether ETFs.

Despite the rebound, bitcoin remains down around 10% year-to-date and ETH around 16%, leaving both assets with considerable room to recover before returning to positive territory for the year.

Wednesday’s US data did little to disturb the market, with the PCE readings broadly consistent with expectations.

The slightly hotter headline number was offset by lower oil prices as markets positioned for a possible de-escalation in geopolitical tensions, reducing concern about another energy-driven inflation shock.

Attention now turns to Fed Chair Kevin Warsh’s Jackson Hole remarks, though the prospect of a major policy signal appears limited given his preference for data dependence and minimal forward guidance.

For crypto, the more important macro transmission mechanism may now be the US Dollar and yield differentials, with further dollar weakness providing an increasingly supportive backdrop for bitcoin and ETH.

Indeed, crypto’s recent strength alongside a less decisive performance from equities suggests the market may be beginning to trade on more than conventional risk appetite alone.

Bitcoin’s monetary scarcity and diversification qualities appear to be attracting renewed attention, particularly amid concerns surrounding US fiscal policy and currency debasement, reinforcing the case for further upside once the current consolidation has run its course.