LMAX Digital volumes traded up on Tuesday after a slow start to the week. Total notional volume for Tuesday came in at $447 million, 11% above 30-day average volume.

Bitcoin volume printed $284 million on Tuesday, 24% above 30-day average volume. Ether volume came in at $117 million, 3% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $6,204 and average position size for ether at 2,430.

Volatility has been absent from the market for much of 2022 and is still trending down at yearly low levels. We’re looking at average daily ranges in bitcoin and ether of $968 and $100 respectively.

We’ve been impressed with just how resilient crypto assets have been in recent sessions amidst ongoing turmoil in financial markets. US equities have continued to tumble and the US Dollar has rocketed higher, all while bitcoin and ether continue to hold up above respective yearly lows from June.

All throughout the year, we’ve warned of crypto weakness on the back of a capitulation in risk assets and accompanying wave of demand for the US Dollar. But at the same time, we’ve also said that there will be a point at which investors will start to recognize the longer-term value proposition of crypto assets at deeply discounted prices, despite ongoing fallout in traditional markets.

We’re not convinced we’re there just yet, but we do believe recent price action is confirming such a disconnect between risk sentiment and crypto is on the horizon.

Technically speaking, it’s quite possible the next bounce in bitcoin and eth comes from an overdue recovery rally in risk assets. If we look at just how badly stocks have been beaten up and the US Dollar has rallied over the past several days, the notion that a correction should be forthcoming is far from a silly one.