LMAX Digital volumes cooled off on Tuesday after a strong start to the week. Total notional volume came in at $256 million, 6% below 30-day average volume.

Bitcoin volume printed $128 million, 15% below 30-day average volume. Ether volume came in at $60 million, 1% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $8,272 and average position size for ether at $1,510.

Bitcoin and ETH volatility remains relatively subdued. We’re looking at average daily ranges in bitcoin and ether of $2,310 and $121 respectively.

Over the past 24 hours, crypto markets have traded with a firmer tone, supported by broad-based US dollar selling and a renewed surge in global equities, which have helped reinforce risk appetite across asset classes.

From a technical perspective, both bitcoin and ether continue to show signs of recovery from their critical November lows, with price action over the past day reinforcing the idea that a medium-term base may be forming.

This latest rebound is helping to stabilize momentum and could be setting the stage for a push back toward recent highs, provided external conditions remain supportive.

Flows have been constructive, and volatility has moderated, pointing to a more orderly recovery phase.

Geopolitically, risk premiums remain contained for now, allowing investors to refocus on growth and policy rather than headline-driven volatility, which continues to favor risk assets including digital assets.

The main focus for the day now turns squarely to the Federal Reserve decision, which is expected to be the dominant driver of near-term direction.

Markets will be watching closely for any changes in guidance around growth, inflation, and the policy outlook, with crypto likely to take its cue from the dollar and equities in the aftermath.

A dovish-leaning hold could further support the recovery narrative, while any hawkish surprise risks could undermine the current rebound.