LMAX Digital volumes were light to start the week amid tight trading conditions. Total notional volume came in at $326 million.

Breaking it down per coin, bitcoin volume came in at $187 million. Ether volume came in at $74 million.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $9,038 and average position size for ether at $3,379.

Volatility has been cooling off in recent sessions following a sharp uptick. We’re looking at average daily ranges in bitcoin and ether of $2,062 and $80 respectively.

Bitcoin heads into Tuesday continuing to show encouraging resilience against a firm dollar and elevated Treasury yields. The ability to absorb those headwinds suggests underlying demand remains supportive.

For ether, that resilience also leaves room for further upside if the macro backdrop becomes more favorable. We see an easing in financial conditions as a potential catalyst for the next wave of momentum across digital assets.

Institutional flows remain a key gauge of conviction. Renewed demand for bitcoin and ether investment products have helped to support the recovery, although bitcoin ETF inflows have subsequently slowed.

More consistent buying would strengthen confidence that the rebound is developing into a broader accumulation trend. Alongside continued strength in US technology shares, that would offer a constructive foundation for further gains.

Our central focus remains the dollar, which we believe looks overbought and vulnerable to a substantial reversal. Softer PCE inflation and subdued hourly earnings growth provide a fundamental catalyst by pointing to easing underlying price pressures.

If those developments translate into lower US rate expectations and yield differentials moving against the dollar, we would expect renewed demand for bitcoin and ether. Assets that have held up under restrictive conditions could respond particularly well as those pressures ease.

The qualification is that softer data have yet to deliver sustained relief in longer-term borrowing costs. Persistent services inflation and fragile Middle East energy supplies could slow that adjustment.

Renewed geopolitical stress could also reinforce demand for dollars in the near term. We therefore continue to watch whether improving inflation signals translate into a lasting turn in yields and the currency.

For us, the broader outlook remains constructive, with recent resilience providing an encouraging base for the next move higher. A sustained dollar reversal, accompanied by easing yields and healthy risk appetite, could help unlock that momentum.

The key is whether institutional demand strengthens as the macro headwinds fade. That combination would reinforce the case for a more durable advance in bitcoin, ether and the broader digital asset market.