LMAX Digital volume cooled off on Tuesday. Total notional volume for Tuesday came in at $839 million, 30% below 30-day average volume.

Bitcoin volume printed $454 million on Tuesday, 26% below 30-day average volume. Ether volume came in at $280 million, 30% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $9,150 and average position size for ether at 87,145.

Volatility has been slowly picking up since finding a bottom in July. We’re now looking at average daily ranges in bitcoin and ether of $3,118 and $298 respectively.

There’s been a lot more selling in recent days, with crypto assets under pressure across the board. The most obvious drivers continue to be an extended market into year end, concerns around fallout from the coronavirus, and anticipation of a less investor friendly Fed decision later today.

But we do think the balance of risk could be tilting more towards upside risk, especially with the market already pricing in a more hawkish leaning Fed decision.

It will be hard for the Fed to exceed this expectation and come in even more hawkish, which does set up a sell the fact reaction (positive for risk assets and positive for crypto).

There are also contentions that recent weakness comes from short-term momentum factors. As per Coinglass data, since mid-October, the supply of bitcoin owned by short-term holders has increased by over 330,000 coins, but more than $3 billion in long positions has been liquidated from global exchanges since December 1st.