Total notional volume at LMAX Digital held steady in the previous week. Total notional volume from Monday through Friday came in at $7 billion, up 1.4% from a week earlier.

Breaking it down per coin, Bitcoin volume came in at $3.4 billion in the previous week, off 6% from the week earlier. Ether volume came in at $2.6 billion, up 21% from the week earlier.

Total notional volume over the past 30 days comes in at $36 billion.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $10,259and average position size for ether at $7,797.

Volatility has been slowly picking up since finding a bottom in July. We’re now looking at average daily ranges in bitcoin and ether of $3,468 and $316 respectively.

It was a wild weekend in the world of cryptocurrencies. We had warned about the possibility for massive price corrections and that’s exactly what we got.

As per the usual, the liquidation of leveraged long positions only exacerbated the pace of declines in an already thin weekend market.

Of course, the thin conditions contributed to the whipsaw conditions, with many desks not even knowing just how low prices dropped before a sharp recovery ensued.

We haven’t seen a flash crash type decline like this for a while, but moves like these are certainly not uncommon or unfamiliar to the space.

As far as the catalysts are concerned, we flagged these very risks in our earlier analysis, and indeed, worry around the new coronavirus variant and fears associated with the impact of the Fed taking a tighter policy approach, are what have been attributed to the latest fallout.

Looking ahead, we continue to see risk for additional setbacks over the coming sessions, with the direction in the market still tied to a very shaky outlook for traditional markets into the end of year amidst disruptions around COVID and the Fed policy outlook.

We also except dips to be very well supported on the longer-term value proposition that cryptocurrencies offer.