LMAX Group digital asset volumes got off to a strong start this week. Total volume for Monday came in at $1.3 billion.

Breaking it down per coin, bitcoin volume came in at $1.2 billion. Ether volume came in at $31 million.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $5,840 and average position size for ether at $2,636.

Volatility has been in contraction mode since rebounding sharply from its August low. We’re looking at average daily ranges in bitcoin and ether of $1,997 and $90 respectively.

The crypto market continues to navigate a challenging period. While the latest bout of weakness has revived concerns about a deeper correction and a possible return to previous lows, we believe the broader picture remains considerably more constructive than the near-term price action might suggest.

Indeed, stepping back to the weekly charts, the market appears to be searching for its next higher low rather than signaling a decisive breakdown in the longer-term bullish structure.

One of the more encouraging developments has been the market’s ability to absorb another substantial drawdown, recover meaningfully, and preserve the broader pattern of resilience. Importantly, this cycle’s drawdown was less severe than its predecessor, reinforcing the argument that successive bouts of selling pressure are becoming less destructive.

This leaves Bitcoin well below its 2025 record high, but with a potentially compelling upside opportunity should the established pattern of deep corrections followed by renewed advances continue.

The fundamental backdrop also remains supportive, with institutional participation, expanding real-world adoption, and growing recognition of the benefits of bringing traditional financial assets on-chain strengthening the longer-term investment case.

Bitcoin continues to benefit from its position as the most established institutional gateway into digital assets, while ETH remains particularly well positioned to capture the opportunities associated with tokenization, stablecoins, and the continued integration of blockchain infrastructure into traditional finance. These developments provide an important counterweight to the more cautious sentiment currently dominating short-term trading.

Recent price action has also reflected developments beyond the digital asset space, with weakness in technology shares, elevated energy prices, and geopolitical tensions contributing to a more defensive investment environment. Institutional flows have been uneven, with renewed demand for Bitcoin investment products followed by fresh outflows, while ETH has continued to face comparatively greater pressure.

Nevertheless, we suspect the market is approaching an inflection point, where a single convincing bullish reversal could prove sufficient to restore confidence, attract sidelined capital, and generate a meaningful shift in momentum.

Attention now turns to a particularly important week for global monetary policy, with decisions from the Federal Reserve, ECB, and Bank of Japan, alongside key US economic releases. While these events introduce the potential for additional volatility, we see meaningful scope for a more favorable outcome given how much monetary policy hawkishness already appears to be reflected in market expectations.

Any moderation in central bank rhetoric, accompanied by softer Treasury yields and renewed appetite for risk, could provide the catalyst for a broader recovery. Against this backdrop, we remain optimistic that the current weakness will ultimately be remembered as another constructive consolidation ahead of a potentially impressive next leg higher.