Total notional volume at LMAX Digital trended higher in the previous week. Total notional volume from Monday through Friday came in at $2.7 billion, 4.5% higher than the week earlier.

Breaking it down per coin, Bitcoin volume came in at $1.6 billion in the previous week, off 2.1% from a week earlier. Ether volume came in at 890 million, up 18% from the week earlier.

Total notional volume over the past 30 days comes in at $13.14 billion.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $8,071 and average position size for ether at $2,857.

Volatility is still struggling to show signs of picking back up. We’re looking at average daily ranges in bitcoin and ether of $1,008 and $113 respectively.

Crypto markets have been holding up relatively well of late, especially when considering a period of exceptionally low volume, which has clearly had a negative impact on many exchanges. Remember, the other week, Coinbase reported a massive loss along with a reduction in trading revenue and active users.

Adding insult to injury, the Wall Street Journal was out saying Q2 2022 was arguably the worst three-month period for cryptocurrencies in their short life span. A lot of this having to do with global macro forces, and some of it also having to so with blowups in the space, highlighted by the collapse of Terra.

But even with all the fallout, we have seen a nice recovery out from the yearly lows, and there is plenty of strong evidence to support the case for ongoing institutional adoption despite the recent weakness. Names like Abrdn, BlackRock, and Charles Schwab have all been out announcing deals or products around crypto.

Still, our biggest concern right now is less about any crypto specific weakness, rather renewed weakness in the space that stems from another round of risk liquidation in global equities. We’ve seen a nice recovery in recent weeks as the market reprices Fed expectations.

But we’re not convinced inflation is under control and if we’re proven right, this could open the door for downside pressure on risk assets, which would weigh on crypto yet again. Ultimately, both bitcoin and ether are still very much in downtrends, with the recent bounces nothing more than corrective.

Technically speaking, both bitcoin and ether could be looking for their next respective lower tops ahead of a resumption of declines that could open the door to fresh yearly lows.

So we’re by no means out of the woods just yet. Overall, we believe additional setbacks should be limited, but we aren’t ready to rule out the possibility that we do see additional weakness before the next major rally ensues.