LMAX Digital volumes were quite healthy in Monday trade considering a thinner overall day of activity in financial markets. Total notional volume for Monday came in at $522 million, 10% above 30-day average volume.

Bitcoin volume printed $305 million on Monday, 12% above 30-day average volume. Ether volume came in at $179 million, 7% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $8,284 and average position size for ether at 3,168.

Volatility is still struggling to show signs of picking back up. We’re looking at average daily ranges in bitcoin and ether of $911 and $114 respectively.

As far as crypto assets go, we’re still very much on this narrative where as stocks go, so does crypto. But as we’ve said time and again, this correlation should break down the further along we get, and we should get to a place where crypto is trading more on its own fundamentals than those of the stock market.

In our view the reason we’ve been so correlated to stocks is because crypto is still considered to be a young, new, emerging market. And because of this, despite its fundamentals, the market trades crypto like a risk correlated asset.

But in reality, and especially when it comes to the conversation around bitcoin, we’re talking anything but a risk correlated asset. Bitcoin’s properties reflect an asset that should actually be exceptionally well supported in times of uncertainty.

This is not some stock or index tied to corporate performance, rather a deflationary currency and monetary system in which the limited supply economics dictate that the price should only move higher over time.

The question we put forward to clients all the time is the question of whether or not clients believe bitcoin will be around in 5 years? If you believe bitcoin will be around in 5 years, this suggests more acceptance, and more adoption, which given the deflationary economics, points to a higher price.

And considering the progress in the space, and where we’re at right now as compared to where we’ve been, the outlook is most certainly highly promising. We’re now looking at a market that has gained the attention of banks, institutions, endowment funds, family offices and more.

These players are only now just starting to dip in, which means when they really get going, there will be a flood of demand for an exceptionally limited supply asset. Again, this should put plenty of upward pressure on the price.

At this stage, bitcoin and the broader crypto market have already taken a big hit in 2022. While we wouldn’t rule out the possibility of another sharp pullback on the back of more fallout in US equities, we also believe any setbacks from here should be limited to the $10k area, if in fact we do get down that low.

The point being, we’re that much closer to that breakdown in correlation with risk sentiment. The value proposition is ringing a lot louder, and a lot more clearly, with bitcoin trading down below $20k than it was following the parabolic run-up towards $70k in late 2021.