LMAX Digital volumes shot up on Wednesday. Total notional volume came in at $516 million, 39% above 30-day average volume.

Bitcoin volume printed $224 million, 14% above 30-day average volume. Ether volume came in at $205 million, 129% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,045 and average position size for ether at $2,867.

Volatility is showing signs of bottoming out after trending lower since early February. We’re looking at average daily ranges in bitcoin and ether of $3,164 and $129 respectively.

Bitcoin and the broader crypto market have extended their recovery over the past 24 hours, supported by improving global risk sentiment, institutional developments, and renewed ETF inflows.

Bitcoin remains the primary proxy for overall market direction, anchoring the advance and reinforcing its role as the key institutional benchmark, while broader participation across major assets has helped strengthen confidence in the durability of the move.

Notably, ETH has outperformed bitcoin over this latest stretch, marking an encouraging shift in internal market dynamics.

Periods of ETH outperformance are typically indicative of a healthier and less defensive environment, reflecting increased willingness among investors to move beyond bitcoin and allocate across the broader crypto ecosystem.

This rotation signals improving risk appetite within the asset class and suggests the rally is being driven by more than just defensive positioning.

This also coincides with a refreshing improvement in crypto’s correlation profile with traditional risk assets. In recent months, crypto had displayed a discouraging asymmetric pattern—declining alongside equities during risk-off periods but failing to meaningfully participate in equity market recoveries.

The latest price action breaks from that trend, with crypto not only responding positively to improving risk sentiment but also outperforming equities on the upside, pointing to strengthening conviction and healthier positioning.

A key development generating market attention has been the latest Morgan Stanley update, which highlighted a more comprehensive crypto offering than previously detailed.

While Morgan Stanley’s involvement in digital assets has been known for some time, the latest developments provide important confirmation and deeper visibility into the scale and seriousness of its commitment, particularly across its wealth management platform.

This reinforces the broader institutional adoption theme and signals continued integration of crypto into traditional financial infrastructure.

From a flows perspective, renewed inflows into US spot bitcoin ETFs have provided additional support and helped reinforce the improving tone.

After a period of more mixed flow trends, the return of consistent inflows suggests institutional allocators are once again adding exposure, helping to establish a firmer demand base.

The ETF structure continues to represent a key structural pillar for the market, improving accessibility while contributing to more stable and transparent capital allocation.

Macro and cross-asset developments have also contributed to the constructive backdrop. Strong performance in AI-linked equities, reinforced by Nvidia’s upbeat earnings and guidance, has helped lift overall risk appetite and supported innovation-driven sectors, including crypto.

The overlap in investor base and thematic alignment between AI and blockchain continues to enhance crypto’s appeal as part of the broader technology and digital transformation narrative.

At the same time, ongoing geopolitical uncertainty, evolving central bank policy expectations, and structural concerns around fiat stability continue to support the longer-term investment case for digital assets.

These macro considerations, combined with improving institutional clarity and stronger technical conditions, have helped create a more supportive environment for crypto.

Overall, the past 24 hours reflect a constructive shift in both external and internal crypto market dynamics. Institutional validation, improving ETF flows, healthier correlation patterns, and ETH’s relative outperformance all point to a market that is becoming more balanced and less defensive.

Technically speaking, the market still has plenty of work to do to encourage the recovery prospect. As per today’s chart analysis, we would like to see bitcoin get back above the top of a recent consolidation range at $73,200 to inspire a more significant bullish structural shift.