LMAX Digital volumes cooled off from Tuesday levels but were up overall on Wednesday. Total notional volume for Wednesday came in at $710 million, 41% above 30-day average volume.

Bitcoin volume printed $301 million on Wednesday, 27% above 30-day average volume. Ether volume came in at $190 million, 84% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $9,775 and average position size for ether at $1,622.

Bitcoin volatility is tracking just off peak levels, while ETH volatility has been more contained. We’re looking at average daily ranges in bitcoin and ether of $4,835 and $193 respectively.

Bitcoin and crypto assets were able to generate some more momentum on Wednesday after US inflation data came in softer than expected.

The below forecast result means the Fed might be more inclined to lean in a more accommodative policy direction, which means lower US yields and rate differentials that move out of the US Dollar’s favor.

At the same time, the ongoing stress around global trade wars and a possible recession in the Unites States has been weighing on markets across the board, with cryptocurrencies being no exception.

Meanwhile, the crypto market is waiting for a fresh wave of positive catalysts to encourage the next leg higher. Now that President Trump’s crypto reserve proposal is officially on the table, the next question becomes one of substance as far as timing and execution goes.

Technically speaking, it looks like we’ve seen most of the correction play out since bitcoin recorded that record high back in January. The market will now start the process of looking for the next major higher low. We believe bitcoin should be exceptionally well supported on dips towards $70k.

Looking ahead, the focus will be on the global macro and US economic data. Investors will be wanting to keep up with headlines around trade tariffs, while taking in US producer prices and initial jobless claims.