LMAX Digital volumes followed up an impressive Tuesday performance with an even more impressive Wednesday showing. Total notional volume for Wednesday came in at $551 million, 55% above 30-day average volume.

Bitcoin volume printed $321 million on Wednesday, 75% above 30-day average volume. Ether volume printed $148 million, 46% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $5,210 and average position size for ether at 3,062.

Volatility has turned up from multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $776 and $72 respectively.

A round of short liquidations have encouraged further price appreciation in crypto assets as we head into the end of the week.

Bitcoin is now trading back towards major psychological resistance up at $25,000, with sights set on a retest of the critical barrier in the form of the August 2022 high.

Should we see bitcoin establish back above the August 2022 high at $25,220, it would suggest the market is putting in the next major bottom ahead of the start to a much larger bullish move.

That being said, the aggressive January run followed up by this most recent parabolic price action does warn that it could be difficult for the run to hold up above the August 2022 high right now.

Fundamentally, US equities have been exceptionally well supported despite signs that continue to point to tighter, less investor friendly monetary policy.

And on the crypto front, the market has already shrugged off earlier worry around regulatory crackdown, instead focusing on the news of large traditional market players establishing and increasing exposure to digital assets.

On Wednesday, we talked about Citadel Securities, Susquehanna Advisors all upping stakes in Silvergate. And we also talked about the Soros fund upping existing bets on Marathon Digital and MicroStrategy.

We do need to issue a correction from Wednesday’s note. Soros’ fund is actually short Silvergate.