LMAX Digital volumes held steady overall to start the week though the numbers were somewhat skewed. Total notional volume for Monday came in at $459 million, just 1% below 30-day average volume.

Bitcoin volume printed $183 million on Monday, 32% below 30-day average volume. Ether volume came in at $244 million, 53% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $8,438 and average position size for ether at 3,143.

Volatility is still struggling to show signs of picking back up. We’re looking at average daily ranges in bitcoin and ether of $980 and $116 respectively.

In recent weeks, crypto traders may have been bothered by correlations that weren’t working. We had seen stocks make a strong recovery to the topside, all while bitcoin and ether had no real interest in participating in the run. We have long argued that as time passes, the correlation between stocks and crypto will fade, and perhaps we’re starting to see this play out a bit now.

We’re seeing more evidence of this as stocks head south again, with bitcoin and ether holding steady amidst the fallout in global markets. We believe a lot of what is contributing to this breakdown in correlation between crypto and stocks is the fact that bitcoin and ether have dropped back to levels where valuations are highly attractive.

At this stage, we wouldn’t rule out more downside pressure on crypto assets, and more downside pressure coming from risk off flow. But we do believe we will be seeing less of this going forward. Bitcoin has too much to offer as a hedge against risk off flow, and bitcoin also has plenty to gain as adoption continues to ramp up. While ether and other cryptocurrencies aren’t the same as bitcoin, we expect them to benefit from the rally in bitcoin as well.

For now, the focus is mostly on event risk in the latter half of the week by way of the Jackson Hole Symposium and a speech from the Fed Chair. The market is still trying to figure out how to price Fed policy going forward and any additional color on this front is likely to inspire volatility in traditional markets that will filter over, at least somewhat, to crypto assets.