Volumes at LMAX Digital were down across the board on Wednesday, though still healthy overall. Total notional volume came in above the yard marker at $1.1 billion, 11% below 30-day average volume. Total notional volume over the past 30 days comes in at $35.8 billion.

Interestingly enough, both bitcoin and ether volumes held up better than the total notional, with bitcoin volume only off 8% from 30-day average volume and ether volume off just 4% from 30-day average volume.

We also continue to see a nice rise in position size. Bitcoin position size jumped to $12,466 on Wednesday, 26% above 30-day average position size, while ether position size was up 23% above 30-day average position size at $5,585.

At the moment, the pullback in crypto is quite normal and all within what has been a healthy recovery out from the yearly lows. Corrections are a part of uptrends as they make higher lows.

The evidence is encouraging as reflected in the data, which shows a record amount of bitcoin transferring through the network this week, over two thirds above what was transferring through the network on the record run earlier this year.

Overall, the picture is constructive, though we do continue to see downside risk associated with any sharp turnaround in the US equities market. Ultimately, this should set up a compelling opportunity to buy at more attractive levels further down. But this is a risk that needs to be considered.