LMAX Digital volumes came in healthy on Tuesday following a strong start to the week. Total notional volume for Tuesday came in at $376 million, 52% above 30-day average volume.

Bitcoin volume printed $209 million on Tuesday, 53% above 30-day average volume. Ether volume came in at $66 million, 14% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $4,524 and average position size for ether at 2,185.

Volatility is finally showing signs of turning up from multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $530 and $52 respectively.

We’re concerned this incredible run to start 2023 is getting close to fizzling out. The primary considerations here are technical readings and a fundamental backdrop that is starting to sour.

Technically speaking, it’s tough to ignore daily RSI readings in both bitcoin and ether that are through the roof. Whenever readings get this extended, at a minimum, it warns that we shouldn’t expect much more to the topside before a longer period of consolidation.

Fundamentally, global markets are looking a little more fragile into the mid-week. This comes on the back of a slumping Empire Fed manufacturing read and discouraging earnings results out of Goldman Sachs.

We also continue to worry about developments over at Digital Currency Group and how the firm will navigate through this latest round of woes. The company has just come out announcing it has suspended dividends in order to preserve cash.

Looking ahead, we will continue to monitor developments on this front, while focusing on a healthy round of first-tier economic data out of the US later today that includes producer prices, retail sales, and industrial production.