LMAX Digital volumes put in another healthy performance on Wednesday. Total notional volume came in at $368 million, 65% above 30-day average volume.

Bitcoin volume printed $180 million, 56% above 30-day average volume. Ether volume came in at $65 million, 49% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,105 and average position size for ether at $1,358.

Volatility is turning up after an extended period of supression. We’re looking at average daily ranges in bitcoin and ether of $2,353 and $110 respectively.

Crypto markets remain under pressure, with Bitcoin and Ethereum trading near their lowest levels of the year amid a period of consolidation following the strong gains seen through 2025.

However, the recent decline appears less indicative of a deterioration in long-term demand and more reflective of a healthy correction within an ongoing cycle.

Notably, trading volumes have picked up considerably during the latest selloff, suggesting heightened participation around current levels and pointing to an active transfer of ownership rather than outright capitulation.

A key feature of this cycle has been the arrival of U.S. spot ETFs, which introduced a large cohort of new investors to the asset class.

Many of these participants entered during periods of strong momentum and are now experiencing their first meaningful drawdown. Recent weakness appears to have flushed out a portion of these shorter-term holders, with supply increasingly migrating toward investors with longer investment horizons and greater conviction in the underlying digital asset thesis.

From a technical perspective, the broader picture remains largely unchanged. Bitcoin and Ethereum have effectively retraced back to the major lows established in February, with Bitcoin continuing to hold above those levels while Ethereum has only marginally broken below.

Importantly, Bitcoin continues to find strong support in the $60,000 area, while momentum indicators across major crypto assets have moved into deeply oversold territory, suggesting conditions are becoming increasingly supportive of a corrective rebound.

Outside of crypto-specific developments, digital assets continue to take their cue from broader macro themes. Investors remain focused on the outlook for global growth, monetary policy expectations, and geopolitical developments, particularly ongoing tensions in the Middle East and renewed trade frictions between major economies.

While risk appetite has remained resilient overall, as evidenced by record highs in major equity indices, investors have generally shown a preference for expressing risk through more familiar asset classes such as stocks. Against this backdrop, cryptocurrencies have faced a relatively higher hurdle in attracting fresh capital, contributing to a more cautious tone across the digital asset space.

Despite these headwinds, the longer-term structural story remains intact. Institutional participation continues to deepen, market infrastructure has improved significantly, and ownership is becoming increasingly concentrated among strategic investors rather than momentum-driven traders.

Viewed through this lens, the current environment increasingly resembles the later stages of a corrective phase rather than the beginning of a new structural downturn, with the foundations for the next leg of the cycle being established.