LMAX Digital volumes were up a nice amount on Wednesday. Total notional volume for Wednesday came in at $571 million, 31% above 30-day average volume.

Bitcoin volume printed $288 million on Wednesday, 15% above 30-day average volume. Ether volume printed $199 million, 73% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,515 and average position size for ether at 3,099.

Volatility has been trending lower in correction mode after peaking out at a yearly high in March. We’re looking at average daily ranges in bitcoin and ether of $970 and $77 respectively.

On Wednesday, there was a lot of chatter around an unusually large sale of bitcoin, to the tune of $600 million, which had some market participants feeling a little uneasy.

But overall, price action remains highly constructive and as per our analysis this week, a correction has been somewhat overdue following the recent run higher.

For the most part, the most likely fundamental catalysts for the weakness are global macro flow and worry around the regulatory climate in the cryptocurrency space.

As far as the global macro goes, in recent sessions, we’ve seen investors repricing Fed rate hike odds on the back of economic data and hawkish Fed speak, which has resulted in yield differentials moving back into the Dollar’s favor.

On the regulatory front, crypto players have perhaps been feeling a little more vulnerable as the lack of clarity shines through once again, highlighted by way of SEC Gary Gensler’s testimony.

Technically speaking, there is some initial support in bitcoin around $27,225, which guards against more meaningful short-term support at $26,525. Key resistance comes in the form of the recent yearly high up at $31,050.