Total notional volume at LMAX Digital was a little lower overall in the previous week. Total notional volume from last Monday through Friday came in at $1.9 billion, 12.87% lower than the week earlier.

Breaking it down per coin, Bitcoin volume came in at $1.1 billion in the previous week, down 12.14% from a week earlier. Ether volume however turned up, coming in at $541 million, 8.36% higher than the week earlier.

Total notional volume over the past 30 days comes in at $10.1 billion.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $5,114 and average position size for ether at $2,775.

Volatility is finally showing signs of turning up from multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $713 and $67 respectively.

We’ve been impressed with the ongoing wave of demand for crypto assets in January. Bitcoin has been leading the charge, up well over 40% on the month.

We always feel rallies led by bitcoin serve as a better indication of strength and demand in the market, with bitcoin the larger asset and the asset that is likely to lead the way when it comes to institutional adoption.

At the same time, it’s hard to ignore technical readings that continue to warn of a correction on the horizon, with the daily RSI on the bitcoin chart sitting above 80.

At the moment, it feels like the rally could still extend a little more before we see that correction finally play out, with bitcoin’s sights set firmly on a retest of the August 2022 high at $25,220.

As far as the week ahead goes, the big focus will be on the major central bank event risk in the form of Wednesday’s FOMC decision.

As things stand, if the Fed leans more hawkish with its communication, there is risk we see fallout in global markets and a downturn in sentiment, which could translate to weakness in crypto.

If on the other hand the Fed delivers a more dovish leaning message, we could see a fresh wave of demand for crypto assets as global markets likely get a boost from the more investor friendly Fed communication.