LMAX Digital volumes cooled off just a bit from Monday’s robust levels, but continued to trade well above 30-day average volumes. Total notional volume for Tuesday came in at $1.4 billion, 77% above 30-day average volume.

Bitcoin volume came in at $968 million on Tuesday, 112% above 30-day average volume, while Ether volume came in at $241 million, 14% above 30-day average volume. Total notional volume over the past 30 days ticked up to $24 billion.

Average trade sizes have also been ticking up. On Tuesday, average trade size for bitcoin was $11,109, 46% above 30-day average trade size, while average trade size for Ether cam in at $4,854, 49% above 30-day average trade size.

Tuesday’s US Senate Banking Committee hearing on crypto was celebrated in the community after it became clear government officials were open to understanding the nuances within the space. This is quite the departure from where we were with government sentiment just a few years back.

There now seems to be a clear understanding that the crypto universe is far reaching with respect to applications, with many extending well beyond financial use cases, and regulation should be sensitive to this fact.

We’ve since seen some added demand built up, with prices wanting to head higher. But we continue to recommend exercising caution, with key resistance levels in bitcoin yet to be cleared and major event risk ahead in the form of the FOMC decision.

Later today, the Fed will release its latest decision on policy and if that decision results in downside pressure on US equities, we believe this could prove to be a short-term disruption for crypto assets.

Many players still see crypto as an emerging market play, which makes it somewhat vulnerable in a risk off backdrop.