LMAX Digital volumes were healthy overall on Tuesday. Total notional volume for Tuesday came in at $610 million, 13% above 30-day average volume.

Bitcoin volume printed $320 million on Tuesday, 13% above 30-day average volume. Ether volume came in at $58 million, 28% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $10,586 and average position size for ether at $2,337.

Market volatility has cooled off since topping out in December. We’re looking at average daily ranges in bitcoin and ether of $3,508 and $171 respectively.

It’s been a shaky start to 2025 for crypto assets. But all things considered, the latest sharp setbacks have been exceptionally well supported and the technical picture remains highly constructive.

A lot of the recent volatility can also be attributed to sentiment in traditional markets. Correlations between crypto assets and US equities have been running higher of late as a hawkish repricing of Fed risk plays out.

Less rate cuts in 2025 means higher US yields, which also translates to a reduction in risk appetite and a stronger US Dollar.

Though there is plenty to be said for bitcoin rallying in risk off trade, there continues to be an active market trading bitcoin as a risk asset, which can open downside when stocks sell off.

Moreover, irrespective of the price action relating to stocks, the higher US yields translate to broad based US Dollar demand relative to all other currencies, which extends to crypto assets as well.

Having said all that, in recent sessions, there has been a nice resurgence in demand. This has coincided with demand in the equities market.

We believe a lot of this demand has been inspired by a combination of the Trump administration talking about a more gradual approach to tariffs, and Tuesday’s softer than expected US producer prices.

As far as crypto specific updates go, the market is celebrating the news of Intesa Sanpaolo SpA making its first spot bitcoin purchase.

Looking ahead, it will be important to keep an eye on today’s US CPI read. If CPI follows the same path as PPI, it could open an acceleration of crypto demand.

If on the other hand the CPI is hotter than expected, crypto assets could come back under some pressure.