LMAX Digital volumes continue to trend higher in 2023. Total notional volume for Tuesday came in at $523 million, 41% above 30-day average volume.

Bitcoin volume printed $287 million on Tuesday, 49% above 30-day average volume. Ether volume printed $136 million, 26% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $5,315 and average position size for ether at 3,033.

Volatility has been running up in 2023 off multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $925 and $103 respectively.

It was impressive to see crypto prices moving higher last week, despite downside pressure in US equities. The price action gave us an encouraging glimpse of what to expect in the future with respect to crypto moving and trading on its own fundamentals.

But at this stage, we’re only starting to get a glimpse of this and it will take more time for the emerging asset class to mature before it can fully get to a place where it isn’t tracking with global fundamentals.

And at the moment, intensified downside pressure in the stock market from an ongoing repricing of Fed expectations has proven too difficult for crypto assets to ignore, with bitcoin and eth pulling back as a consequence.

Technically speaking, it’s also important to be aware of the fact that we saw a parabolic price move in January, with bitcoin trading up some 40%. This alone left the market at risk for some form of a correction.

Moreover, the bitcoin rally stalled exactly into critical resistance in the form of the August 2022 high. Ultimately, it will take a clear break above this level to truly encourage the prospect that we are seeing the next major low.