LMAX Digital volume has been picking up at an impressive pace this week, with another solid performance on Tuesday. Total notional volume for Tuesday came in at $867 million, 37% above 30-day average volume.

Bitcoin volume printed $587 million on Tuesday, 46% above 30-day average volume. Ether volume came in at $205 million, 23% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $12,947 and average position size for ether at 5,681.

Volatility has been trending lower in 2022. We’re now looking at average daily ranges in bitcoin and ether of $1,97 and $155 respectively.

The latest pullback in the crypto market directly coincides with the pullback in US equities as this correlation continues to hold up in 2022. Our view here is that the correlation makes sense, at least for now, as many market participants still view the asset class as a risk correlated emerging market.

The catalyst for this latest wave of risk off flow seems to be coming from Fed speak, with one of the most dovish leaning officials out talking hawkish, proposing a much faster pace of reduction in the balance sheet than what was seen between 2017 and 2019.

Data also shows a significant pickup in retail buying in recent sessions, with activity of smaller holders usually taken as a formidable countertrend indicator. Retail traders are often last to the party when it comes to getting the information and so, if retail is making a big move, there’s probably nothing left to be priced, leaving the balance of risk to the downside.

On a positive note, this week, Digihost became the first publicly traded crypto miner to offer shareholders the option to take dividend payments in bitcoin, starting from the third quarter of this year. The company’s first dividend will be 10% of its net income during the third quarter of 2022. Shareholders will have the option to get paid in either bitcoin or cash.

Another positive is the Bitcoin 2022 conference, now underway in Miami. Our team is in attendance and will be making appearances throughout. We welcome anyone attending to come over and say hello. And if you haven’t already, our CEO, David Mercer sat down with Anthony Pompliano on Tuesday to discuss all things crypto. Catch the interview HERE. It’s a good one.