LMAX Digital volumes picked up Tuesday as US markets returned from holiday. Total notional volume for Tuesday came in at $691 million, 22% above 30-day average volume.

Bitcoin volume printed $382 million, 63% above 30-day average volume. Ether volume came in at $199 million, 7% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $11,745 and average position size for ether at $3,352.

Bitcoin volatility continues to consolidate off yearly low levels. Meanwhile, ETH volatility is cooling off after recently surging to the highest levels since December 2021.

We’re looking at average daily ranges in bitcoin and ether of $2,901 and $225 respectively.

Bitcoin traded firmer over the past 24 hours, bouncing back toward the $112,000 level after testing lows around $108,500. The modest rebound reflects resilient demand but also highlights a divergence from other traditional havens.

Gold has surged to fresh record highs, underscoring its appeal in a cautious macro environment, while Bitcoin has not followed to the same degree. Part of this underperformance could be tied to rotation within crypto itself, with capital flowing toward Ethereum in recent weeks.

Ethereum has been the standout of the summer, advancing more than 200% over five months and reasserting its role as the backbone of decentralized finance.

ETF inflows and rising institutional allocations have reinforced the narrative, with the outlook continuing to favor fresh highs into year end. This relative strength has at times come at Bitcoin’s expense, as investors rebalance exposure between the two leaders.

Broader macro drivers remain important. Expectations of U.S. rate cuts continues to support risk assets, with near-term focus on labor market data as a key catalyst.

However, Bitcoin’s muted response to gold’s breakout may suggest that, for now, it is behaving less like a hedge and more like a high-beta risk asset, tethered to equity and liquidity dynamics rather than geopolitical hedging flows.

Policy developments are another source of momentum. The U.S. administration’s efforts to clarify oversight and even establish a Strategic Bitcoin Reserve are viewed as supportive for long-term adoption.

At the same time, Ethereum’s structural progress and political narratives around crypto continue to feed investor interest, suggesting that the asset class is broadening beyond its historical Bitcoin-led cycles.

Looking ahead, it will be important to keep an eye on the US equity market, which has been showing signs of weakness. Any additional strain on this front could trickle down into crypto assets.

At the same time, if investors are once again exciting about buying the dip, we expect this will help to support broader risk markets including crypto assets.