LMAX Digital volumes picked up on Wednesday, though overall, volume continues to trend below average. Total notional volume for Wednesday came in at $301 million, 21% below 30-day average volume.

Bitcoin volume printed $176 million on Wednesday, 20% below 30-day average volume. Ether came in at $81 million, 25% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $4,599 and average position size for ether at 2,385.

Volatility has been trending lower in recent sessions, but we’re still holding up above yearly low levels. We’re looking at average daily ranges in bitcoin and ether of $624 and $70 respectively.

The Fed Chair was on the wires on Wednesday talking about a slowdown in the pace of interest rate hikes. Despite an ongoing commitment to restrictive policy, the mention of a slowdown was enough to inspire a sizable risk on reaction.

Crypto assets responded as a consequence, with bitcoin and ether putting in impressive gains on the day and breaking out from recent tight consolidations.

Nevertheless, we’re concerned there was too much focus on want to the market wanted to hear rather than the actual reality that inflation is still a problem in 2022.

Monetary policy continues to prioritize the need to address inflation through rate hikes over leaning more accommodative to ward off recession risk.

This reality leaves us highlighted risk that we could soon see another widespread reduction in risk appetite, which could come back around to weigh on crypto into year end.

Technically speaking, any upside price action in bitcoin is still very much classified as corrective action within a well defined downtrend and we’ll need to see a break back above $21,500 to officially take the pressure off the downside.