LMAX Digital volumes recovered nicely on Tuesday, putting in the strongest showing since May 24. Total notional volume for Tuesday came in at $465 million, 17% above 30-day average volume.

Bitcoin volume printed $315 million, 58% above 30-day average volume. Ether volume came in at $92 million, 32% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,861 and average position size for ether at $3,649.

Bitcoin volatility continues to trend lower since peaking in March. Ether volatility has however shown signs of bottoming out. We’re looking at average daily ranges in bitcoin and ether of $2,209 and $143 respectively.

The macro picture has been helping to support crypto assets in recent days.

A round of softer economic data out of the US has translated to the market looking to price more Fed rate cuts than less in 2024, and we’ve pushed back to an expectation for close to two full rate cuts.

The net result is a market feeling better about putting risk on its books, which means flows moving out of the US Dollar favor and yield differentials becoming more attractive for other currencies including cryptocurrencies.

We believe this has put attention back on bitcoin, which had been taking a back seat to ETH in recent days after the SEC approved the spot ETH ETFs.

That attention has translated to $887 million of daily net inflows, the second highest level of inflows since the bitcoin ETFs went live. We’ve also seen 16 consecutive days of net inflows into US bitcoin ETFs.

Technically speaking, bitcoin price action has been constructive in recent sessions, though we have yet to see the price extend back above the May high, which guards against the record high from March.