LMAX Digital volumes put in a healthy performance on Tuesday. Total notional volume for Tuesday came in at $398 million, 30% above 30-day average volume.

Bitcoin volume printed $190 million on Tuesday, 15% above 30-day average volume. Ether volume came in at $129 million, 39% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $6,921 and average position size for ether at 2,924.

Volatility is showing signs of wanting to pick back up in recent sessions after trading down to the lowest levels since earlier this year. We’re looking at average daily ranges in bitcoin and ether of $814 and $55 respectively.

The market remains fixated on developments from the regulatory front, but has been enjoying a welcome distraction from all things global macro.

Investors focused on the softer headline US CPI print from Tuesday, using the data as further confirmation the Fed will be looking to transition towards a less restrictive monetary policy outlook.

The resulting price action saw US equities extending their run of fresh yearly highs, inspiring broad based risk on flow and propping crypto assets as a result.

There was however some positive news out from the Ripple Labs case, which could contribute towards a warmer path on the regulation side.

Ripple Labs disclosed 2018 emails out of the SEC suggesting ETH did not require registration as a security, and internal discussions pointing to the fact that existing securities laws were insufficient to regulate crypto assets.

All of this inspires optimism the path forward will involve a clearer, collaborative path towards regulation, where respected members within the space are working alongside lawmakers to come up with the most suitable framework.

Looking ahead, all eyes will be on today’s Fed decision. At this stage, given how much the market has been pricing a less hawkish Fed, we believe traders should proceed with caution.

The balance of risk is tilting towards either a sell the fact reaction, or a more disruptive selling of risk assets on the back of a Fed that disappoints the market and continues to lean more hawkish than it would like to see.

We believe such a result will weigh more heavily on traditional risk assets, but could also open additional downside pressure on crypto.