LMAX Digital volumes got off to a slow start this week. Total notional volume for Monday came in at $402 million, 9% below 30-day average volume.

Bitcoin volume printed $235 million on Monday, 10% below 30-day average volume. Ether volume came in at $102 million, 18% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,616 and average position size for ether at 2,807.

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 $963 and $69 respectively.

Bitcoin’s ability to hold up into the latest dip is encouraging, and opens the door for a focus back on the topside. Indeed, key support was taken out last Friday. At the same time, the market put in a sharp recovery, holding up well on a daily close basis.

As far as the fundamental catalyst goes, we believe the most likely source is Monday’s dovish speak out from Fed Goolsbee. The voting Fed member said the May hike was a close call, suggesting he’ll be supporting the case for a pause in June.

Yield differentials moved out of the US Dollar’s favor as a consequence, inspiring gains in currencies and cryptocurrencies by extension.

Another crypto supportive story in 2023 is the fallout in the traditional banking sector. Worries around this risk persist and continue to put a positive spotlight on cryptocurrencies as a compelling alternative.

The biggest holdup right now is the lack of regulatory clarity. While we continue to see this acting as a weight into rallies, we also believe all of this will get resolved, which should ultimately fuel a larger wave of adoption.