LMAX Digital volumes got off to a nice start to the week. Total notional volume for Monday came in at $398 million, 16% above 30-day average volume.

Bitcoin volume printed $204 million on Monday, 11% above 30-day average volume. Ether volume came in at $96 million, 13% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $5,118 and average position size for ether at 2,732.

Volatility is finally showing signs of turning up from multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $747 and $69 respectively.

A lot of the focus this week will be on exactly how the market digests tomorrow’s Fed policy decision. As things stand, any reaction that results in risk off flow is likely to have a weighing influence over crypto assets.

We’re already seeing evidence of this ahead of Wednesday, with the market seemingly reconsidering Fed pivot bets and worrying the greater balance of risk is tilted to the downside given how heavy the pressure has been in the lead-up on the Fed to reconsider its stance.

As far as crypto performance in early 2023 goes, there’s no doubt that the month of January has been spectacular, with bitcoin gains exceeding 40% and ether not far behind. But this also leaves us with a feeling the market has run a little too far and fast, setting up room for consolidation and correction ahead.

Fundamentally, updates have been mostly positive. We’re seeing an uptick of inflows from institutional players, and there is no denying the jump in volume.

Another positive worth noting is the record high in bitcoin mining difficulty. The higher mining difficulty translates to a safer and more secure bitcoin network.