LMAX Group digital asset volumes got off to a strong start this week. Total notional volume for Monday came in at $1.2 billion.

Breaking it down per coin, bitcoin volume came in at $1.1 billion. Ether volume came in at $45 million.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $8,264 and average position size for ether at $3,318.

Volatility has been stable since surging back in August. We’re looking at average daily ranges in bitcoin and ether of $2,134 and $91 respectively.

Bitcoin and Ether continue to show encouraging resilience, with overnight setbacks quickly attracting buyers around an important support area and prices recovering toward Monday’s highs.

The repeated defense of dips reinforces our constructive view: despite a challenging macro backdrop, the broader crypto market continues to absorb selling pressure without allowing weakness to gain momentum.

Reports of negative Bitcoin funding add an interesting positioning signal. Negative funding is consistent with bearish demand in perpetual futures, and when that coincides with well-supported prices, it can leave the market vulnerable to a short squeeze.

It is no guarantee of further gains, but could provide additional fuel if Bitcoin extends its recovery, with scope for Ether and the broader market to follow.

The traditional market backdrop remains mixed. Asian technology shares have come under heavy pressure, while Middle East tensions and energy supply risks continue to complicate the inflation outlook.

However, easing Treasury yields and a softer dollar offer a counterweight, helping reduce some of the financial pressure on digital assets ahead of upcoming US inflation releases.

Regulatory progress also continues despite the failure of CLARITY to advance. The SEC’s proposed crypto custody reforms and the CFTC’s proposed framework for certain crypto trading venues indicate that the agencies are pursuing greater clarity independently of Congress.

These remain proposals, but we see the direction as supportive of institutional access, adoption and the longer-term development of both Bitcoin and Ethereum’s ecosystem.

Our overall view remains highly constructive. Crypto’s ability to withstand successive setbacks suggests underlying demand is becoming more durable, while we believe much of the Fed’s hawkishness is already reflected in market pricing.

That leaves the balance of risk favoring an eventual shift against the dollar, creating a potential additional tailwind for digital assets through the final quarter.