Volumes at LMAX Digital were super impressive this past week. Total notional volume from Monday to Friday of last week came in at $8.81 billion, 34% above the previous weekly volume. Total notional volume for September is now on pace to trade up around $40 billion.

Weekend volume was also impressive, coming in at $1.84 billion, up from $1.21 billion the previous weekend. A lot of the pickup in volume in recent sessions has been attributed to the market overreaction to stale news out of China.

Looking at average position size, bitcoin position size comes in at $8,930 over the past 30 days. Average position size for ether over the past 30 days comes in at $4,715.

Crypto markets have already recovered most of last week’s setbacks from the news around China crackdowns. There had been an initial wave of panic as news broke around China bans, but the news wasn’t anything new and demand has since crept back in.

We believe there will indeed be more regulatory headwinds around the space in the months ahead. At the same time, we don’t see these headwinds as something that will destroy the space, rather provide a little more in the way of red tape in order to navigate through the space.

We have seen some reaction to all of this news as far as sentiment towards exchanges in China go, with a mass exodus underway and into alternative platforms where the risk appears to be significantly reduced. Decentralized exchanges have also benefited from the news.

Elsewhere, the market may focus back on the US infrastructure bill this week, with a vote scheduled for Thursday. If the bill passes, it will push through a controversial crypto provision that would apply a broad and far reaching definition of crypto entities required to report transactions to the IRS.