LMAX Digital volumes have been running hot this week. Total notional volume for Tuesday came in at $740 million, 74% above 30-day average volume.

Bitcoin volume printed $536 million on Tuesday, 89% above 30-day average volume. Ether volume came in at $186 million, 68% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $10,607 and average position size for ether at $3,267.

Volatility has been surging since bottoming in August, with both bitcoin and ether closing in on yearly high levels. We’re looking at average daily ranges in bitcoin and ether of $1,270 and $82 respectively.

Crypto assets remain exceptionally resilient in the face of challenging headlines. Both bitcoin and ether have rallied back impressively after taking in the news around Binance’s $4.3 billion fine and CEO Changpeng Zhao’s guilty plea.

The broad takeaway is an increased level of confidence towards the outlook, with this situation now out of the way, paving the path for a healthier space going forward.

There has also been attention around the SEC’s latest complaint against Kraken. Though here as well, the market is less bothered given Kraken’s response to vigorously defend itself against the claim and recent court rulings that have leaned in favor of crypto.

If we look at performance in crypto relative to traditional markets over the past 30 days, crypto has far and away outperformed as reflected through bitcoin and ether, both up around 22% compared to major US equity market indices, up a more modest 7%.

More importantly, the run higher in crypto has also been accompanied by a surge in volume, reflecting legitimate and healthy demand for the asset class.

Clearly, the next big event for crypto will likely come from an SEC approval of spot ETF applications, though this will probably have to wait until Q1 2024.

Technically speaking, bitcoin remains confined to an uptrend and is focused on pushing to a fresh yearly high and towards the next major extension target at $40k. Any setbacks should be very well supported into $32k.