LMAX Digital volume pushed back up a little on Wednesday after a slow start to the week. Total notional volume for Wednesday came in at $826 million, on par with 30-day average volume.

Bitcoin volume printed $586 million on Wednesday, 26% above 30-day average volume. Ether volume came in at $166 million, 41% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $11,555 and average position size for ether at 6,413.

Volatility has been consolidating at the low end of the range in 2022. We’re now looking at average daily ranges in bitcoin and ether of $2,511 and $198 respectively.

On Wednesday, it was about euphoria in the aftermath of an executive order out of the White House that was a lot more friendly to crypto than many had been expecting. The resulting price action saw a surge in cryptocurrencies, helped along by a concurrent recovery in risk assets as geopolitical tension calmed.

But into Thursday, all of that euphoria has faded away and the rally we had seen has been eaten up. Perhaps a lot of this has to do with a typical ‘sell the fact’ type reaction, or perhaps it has to do with the market ultimately recognizing that as much as the government has warmed to crypto, there is still a tough battle ahead when it comes to regulation.

There has also been plenty resistance in the US from personalities with loud voices. Elizabeth Warren has been on a mission to attack crypto at every turn, Warren Buffet has never had anything good to day about it, and neither has Bill Gates. Nevertheless, we don’t think this will do anything to stop the momentum over the medium and longer-term.

Technically speaking, it’s also important to understand that despite the run higher on Wednesday, there was still no fresh clarity with respect to any signs of structural shift. Even with the rally, bitcoin remained well offered ahead of critical resistance in the form of the February high.

In order to see a real bullish shift, we will need to see that level taken out. Until then, the downtrend off the record high from November remains intact, and there is still scope for deeper setbacks.