LMAX Digital volumes put in impressive numbers on Tuesday. Total notional volume for Tuesday came in at $633 million, 37% above 30-day average volume.

Bitcoin volume printed $262 million, 22% above 30-day average volume. Ether volume came in at $225 million, 92% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $10,729 and average position size for ether at $3,245.

Bitcoin volatility is still tracking just off recent yearly lows, while ETH volatility has picked up since bottoming in May. We’re looking at average daily ranges in bitcoin and ether of $2,800 and $134 respectively.

Bitcoin continues to be exceptionally well bid, tracking just below the May record high, while ETH has been on fire, finally poking back above $2,800 to its highest level since February.

Institutional inflows remain a key driver, with BlackRock’s iShares Bitcoin Trust (IBIT) setting a record by surpassing $70 billion in assets under management in just 341 days, outpacing SPDR Gold Shares’ 1,691-day milestone. IBIT’s overall trading volume continues to reflect strong interest from traditional financial market players.

Meanwhile, ETH continues to outperform and shine relative to bitcoin. This outperformance is fueled by growing institutional interest in Ethereum’s ecosystem, notably Société Générale’s planned U.S. dollar-backed stablecoin on Ethereum, signaling confidence in ETH’s infrastructure. Additionally, a healthy bump in decentralized finance total value locked on Ethereum has bolstered investor optimism, driven by anticipation of broader smart contract adoption.

Traditional markets are also providing a supportive backdrop, with US equities extending their run on tech sector strength, and the US Dollar mostly under pressure on yield differentials that are moving in favor of other currencies.

However, uncertainty around today’s U.S. Consumer Price Index release introduces some risk. A higher-than-expected CPI could signal persistent inflation, prompting fears of sustained or tighter Federal Reserve policy, potentially triggering sell-offs in risk assets like crypto. Conversely, a lower-than-expected CPI could reinforce expectations of rate cuts, boosting BTC and ETH prices by enhancing risk-on sentiment.

Geopolitical developments and U.S. policy add further complexity. Ongoing U.S.-China trade talks and President Trump’s tariff policies could exacerbate inflationary pressures if unresolved, potentially dampening crypto gains by strengthening the U.S. dollar.

Middle East tensions and looming U.S. debt ceiling talks may drive safe-haven flows into BTC, though ETH’s momentum suggests it could continue outperforming if DeFi and stablecoin adoption persist.

Overall, the outlook remains highly constructive for crypto assets. As far as the charts go, bitcoin is thinking about that next upside extension targeting $145,000, while ETH’s latest breakout has the world’s second largest crypto asset thinking about a run back towards $3,500.