LMAX Group digital asset volumes cooled off on Wednesday. Total volume came in at $878 million.

Breaking it down per coin, bitcoin volume came in at $798 million. Ether volume came in at $28 million.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $5,497 and average position size for ether at $2,559.

Volatility has been in contraction mode since rebounding sharply from its August low. We’re looking at average daily ranges in bitcoin and ether of $1,939 and $85 respectively.

The crypto market is showing encouraging signs of stabilization following the latest Federal Reserve decision, with price action largely playing out in line with expectations. With the Fed delivering few surprises and little additional ammunition for the hawks, the balance of risk appears to be shifting toward profit taking on US Dollar longs and renewed demand for risk assets.

Bitcoin and ETH have benefited from this shift, although the initial response has been relatively contained.

While the recovery has yet to produce a decisive move higher, there are growing signs that the corrective phase following the impressive August and September rally may be approaching its conclusion. Bitcoin continues to serve as the primary barometer for broader sentiment, with the market showing resilience despite the recent pullback.

ETH has also found support, reinforcing the view that investors are becoming increasingly comfortable rebuilding exposure at more attractive levels.

Importantly, the broader recovery story remains very much intact. Even at the September highs, both Bitcoin and ETH were still trading below their levels from the start of the year, highlighting just how much ground remains to be recovered.

Against this backdrop, the latest correction looks more like a healthy consolidation within an emerging recovery than a fundamental deterioration in the outlook.

As for catalysts, there is little on the immediate horizon from within the crypto market itself that stands out as a major driver. Instead, the next leg higher may simply come from a broader resurgence in demand as investors recognize the opportunity presented by discounted valuations.

The market has already demonstrated a willingness to recover from a difficult start to 2026, and we believe the underlying appetite for digital assets remains strong enough to support an extension of that recovery.

Looking ahead, volatility could pick up around developments in oil markets, upcoming ECB and Bank of Japan policy decisions, and the latest round of corporate earnings. These events will help shape the broader risk environment and direction of the US Dollar.

Nevertheless, we are increasingly encouraged by the possibility that crypto assets are approaching a point where they can begin to outperform on their own merits, with improving sentiment and renewed investor demand helping to drive the next meaningful advance.