LMAX Digital volumes have been thin this week. Total notional volume for Wednesday came in at $445 million, 28% off 30-day average volume.

Bitcoin volume printed $304 million on Wednesday, 27% below 30-day average volume. Ether volume came in at $103 million, 25% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $6,921 and average position size for ether at 2,524.

Volatility continues to hold at yearly low levels. We’re looking at average daily ranges in bitcoin and ether of $1,508 and $122 respectively.

The month of June was not a pretty one for crypto assets. In fact, it was one of the worst months of performance in years. Bitcoin was down 40%, while ether was hit even harder, down some 49%. Year-to-date, bitcoin is down some 60% against the US Dollar, while ether is down a whopping 73%.

The driving force behind the weakness was fallout in traditional markets, with traders heading for the exits as inflation continued to rocket higher, forcing less investor friendly monetary policy.

Of course, there was also plenty of fallout with the crypto space as well, highlighted by the implosions at Celsius Network and Three Arrows Capital. A lot of this a result of contagion from the Terra collapse several weeks back.

Looking ahead, we continue to see risk for additional downside on account of the global economic outlook and prospect that higher inflation and slower growth will lead to more of a shakeup in risk assets, which will open more downside pressure in crypto.

At the same time, we also believe we are getting closer to levels where the longer-term value proposition of crypto will be too difficult to ignore at such discounted prices. Below the respective yearly lows in bitcoin and ether are next key support levels at $14,000 and $700 respectively. We think additional setbacks beyond these levels should be short-lived.