LMAX Group digital asset volumes were on the lighter side to start the week. Total volume for Monday came in at $844 million.

Breaking it down per coin, bitcoin volume came in at $748 million. Ether volume came in at $51 million.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,298 and average position size for ether at $3,049.

Volatility has been picking up since bottoming out in August. We’re looking at average daily ranges in bitcoin and ether of $1,972 and $91 respectively.

Digital assets remain in a consolidation phase, with Bitcoin and Ether searching for direction after the strong recovery through August and September.

We continue to view the recent setbacks as a breather within that recovery, with dips likely to attract support ahead of a potential resumption of gains into year-end.

The timing makes sense against a macro backdrop dominated by uncertainty over interest rates and the Federal Reserve’s next steps. Chair Warsh’s reluctance to signal another imminent increase has reinforced expectations for a pause at the upcoming meeting, despite the latest inflation pressures.

This supports our longstanding view that considerable hawkishness is already reflected in market pricing, leaving room for expectations to shift in a more supportive direction.

Treasury yields have retreated from their recent peaks, although the latest rebound in yields and the dollar shows that the adjustment remains uneven. A sustained move toward lower yields and a softer dollar would provide a clearer tailwind for Bitcoin and Ether.

Elevated oil prices and continuing Middle East tensions remain the principal risks, given their potential to prolong inflation pressure and constrain the Fed’s flexibility.

Within crypto, institutional adoption continues to advance beneath the surface of the consolidation. JPMorgan’s expansion of its JPM Coin deposit token onto Ethereum gives institutional clients another avenue for moving bank deposits on public blockchain infrastructure.

For Ether, this strengthens the network’s institutional relevance, although the implications for token demand will depend on how activity develops.

The same trend is extending into commodities, with physically backed oil token WTIC now available for institutional spot trading on LMAX Digital.

The listing illustrates how digital asset markets are broadening beyond cryptocurrencies, giving institutions new ways to access real-world assets and respond to macro developments outside traditional market hours.

Our bias therefore remains constructive, while allowing for further near-term volatility. Bitcoin remains the primary gauge of market confidence, with Ether offering exposure to the continued development of on-chain finance.

If monetary expectations become less restrictive while adoption progresses, the conditions would favor well-supported setbacks and a continuation of the recovery into year-end.