LMAX Digital volumes were impressive on Tuesday. Total notional volume came in at $425 million, 110% above 30-day average volume.

Breaking it down per coin, bitcoin volume came in at $253 million, 140% above 30-day average volume. Ether volume came in at $51 million, 58% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $5,442 and average position size for ether at $1,395.

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 $2,248 and $94 respectively.

Bitcoin is consolidating around $79,000 after briefly breaking above $80,000 for the first time since May, with some profit-taking emerging following a gain of more than 20% over the past week. Ether has also eased back below $2,500 after an impressive advance of its own, although the broader structure continues to look constructive.

Technical studies are understandably tracking in overbought territory on the daily charts. However, severely overbought conditions do not always unwind through a major reversal, and we believe there is a reasonable possibility that the market simply consolidates sideways at elevated levels, with dips well supported ahead of another push higher.

More importantly, the latest rally strengthens the argument that Bitcoin has established a major cycle low following several months of weakness. A clear break above the May high around $82,820 would provide the next important confirmation, opening the door for a move back through $100,000 and eventually toward the 2025 record high.

The fundamental backdrop has also become more supportive. Lower Treasury yields, a softer US dollar, expanded Treasury bond buybacks, renewed demand for spot crypto ETFs and progress toward clearer US digital-asset regulation have combined to revive institutional interest. Easing US-Iran tensions and the associated decline in oil prices are also reducing inflation concerns and supporting risk appetite, although the geopolitical situation remains fluid.

For now, some sideways price action is entirely understandable given the amount of positioning taking place ahead of US PCE inflation, updated GDP figures, Nvidia earnings and Fed Chair Warsh’s Jackson Hole address. These events could generate near-term volatility, but if the macro backdrop remains supportive, the latest advance may represent the beginning of a stronger period in which crypto recovers its remaining year-to-date losses and begins making meaningful progress back toward record highs.