LMAX Digital volumes saw a nice increase on Wednesday. Total notional volume for Wednesday came in at $525 billion, 48% above 30-day average volume.

Bitcoin volume printed $243 million on Wednesday, 26% above 30-day average volume. Ether came in at $215 million, 69% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $6,628 and average position size for ether at 2,820.

Volatility is finally showing some signs of turning up from yearly and multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $600 and $75 respectively.

The Fed came out and let down investors hoping for a Fed pivot. Instead, the central bank stuck with its hawkish communication of higher for longer, while also signaling a higher terminal rate.

It was no surprise to see the risk off price action that ensued, with stocks under pressure and crypto following suit. At this stage, a lot of where things go from here will likely be data dependent, and the focus will now shift to US employment reports and inflation data.

But it is worth noting that even with the latest setbacks in crypto, the asset class has held up relatively well in recent months, showing signs of wanting to hold up, even through intense periods of risk off.

We saw this when stocks had their latest dump to fresh yearly lows all while bitcoin and ether held above their respective yearly lows. This tells us that correlations with risk assets aren’t going to be as straightforward from here on out.

We believe the 2022 dip in crypto is now inviting fresh demand from longer term players looking to take advantage of the dip, with valuations super attractive and at discounted prices on a bet that shows plenty of promise in the future, irrespective of what happens with traditional risk correlated assets.