LMAX Digital volumes cooled off on Monday after a week of solid volume. Total notional volume for Monday came in at 316 million, 34% below 30-day average volume.

Bitcoin volume printed $218 million on Monday, 19% below 30-day average volume. Ether volume came in at $63 million, 61% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $6,479 and average position size for ether at 2,851.

Volatility is showing some signs of life after trading to yearly and multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $995 and $106 respectively.

Our primary concern for the crypto market right now is how things will play out when traditional risk assets come back under pressure.

US equities have rallied sharply all throughout the crypto implosion, something that has probably been helping a good deal to mitigate fallout in crypto.

Should risk sentiment deteriorate and stocks come back under pressure, it could make things that much uglier for crypto assets that have shown a healthy relationship with the direction in stocks in 2022.

Details around the FTX implosion are still being collected, though it’s clear there will be more fallout from the contagion around the blowup in the days ahead.

Technically speaking, we continue to highlight additional downside risk in bitcoin towards $10k now that previous support at $17,600 has been taken out.

We would need to see bitcoin break back above $21,500 to take the immediate pressure off the downside.