LMAX Digital volumes were mixed to start the week. Total notional volume for Monday came in at $272 million, 9% below 30-day average volume.

Bitcoin volume printed $148 million, 23% below 30-day average volume. Ether volume came in at $71 million, 48% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,761 and average position size for ether at $1,267.

Volatility continues to consolidate off multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $2,204 and $80 respectively.

Crypto markets are entering the new session in consolidation mode after an impressive rebound from this year’s lows, holding onto the bulk of recent gains as investors pause to assess whether the recovery has further to run.

The tone has improved materially over recent weeks, though there is still evidence of cautious positioning after the deep drawdowns of the past several months. Rather than aggressive profit-taking, price action looks more consistent with a market digesting gains while waiting for the next meaningful catalyst.

From a technical and sentiment perspective, Ethereum remains the one to watch right now. ETH continues to edge closer to the neckline of a developing double-bottom formation around the $1,850 area, with a sustained break above that level likely to reinforce confidence that a broader trend reversal is underway.

More importantly, Ethereum’s relative resilience is increasingly being viewed as a gauge of risk appetite across the digital asset space, particularly after spending much of the past year underperforming bitcoin.

Fundamentally, the backdrop within crypto continues to improve. The White House has confirmed work is underway on establishing the U.S. Strategic Bitcoin Reserve and broader digital asset stockpile, marking another step toward formalizing digital assets within national financial policy.

Elsewhere, institutional adoption continues to broaden, with U.S. spot bitcoin ETFs attracting another $265 million in net inflows, their strongest daily intake in two months, while tokenized real-world assets continue to gain traction as deposits into DeFi-backed RWA protocols have surged roughly 200% over the past year despite softer overall DeFi activity.

The macro backdrop nevertheless remains an important consideration. Digital assets have shown encouraging signs that they are becoming increasingly capable of standing on their own fundamentals after such a severe repricing left valuations looking considerably more attractive than many traditional risk assets.

Even so, crypto has not fully decoupled from broader financial markets, and investors are likely to remain cautious ahead of the upcoming Federal Reserve minutes for further clarity on how committed policymakers remain to a restrictive policy path under the new leadership.

Overall, the balance of risks still appears constructive. Improving institutional participation, supportive policy developments, strengthening blockchain fundamentals and resilient price action continue to argue that the worst of the correction may now be behind the market.

While periods of consolidation should be expected after such a sharp recovery, the broader tone suggests confidence is gradually rebuilding, with investors increasingly willing to look beyond short-term macro uncertainty toward the longer-term maturation of the digital asset ecosystem.