Total notional volume at LMAX Digital turned back up in the previous week. Total notional volume from Monday through Friday came in at $2.8 billion, 9% higher than the week earlier.

Breaking it down per coin, Bitcoin volume came in at $2 billion in the previous week, up 34% from a week earlier. Ether volume continued to stumble, coming in at $462 million, off 37% from the week earlier.

Total notional volume over the past 30 days comes in at $20.3 billion.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $8,210 and average position size for ether at $3,628.

Volatility has come back down to yearly low levels after trying to break out in May. We’re looking at average daily ranges in bitcoin and ether of $1,554 and $129 respectively.

As we get going in June, the driving force behind direction in crypto markets continues to be all things global macro. We’ve seen plenty of downside pressure on prices resulting from lower US equities and the market pricing a tighter path to Fed policy normalization.

Going forward, we think the market will continue to digest the impact of Fed quantitative tightening and the rate hike path. Should we see things continuing to lean in a more restrictive trajectory, as things stand, it will likely lead to more liquidation in equities, which in turn, will lead to more selling pressure in crypto.

Having said that, we have seen a very clear outperformance in the price of bitcoin relative to other cryptocurrencies throughout this period of risk off. We’ve also seen this reflected in price action, with bitcoin already trying to turn back to the topside, despite ongoing selling in stocks.

Naturally, as the US Dollar gets stronger, it takes away positive momentum from cryptocurrencies on the whole. But it’s important to note what exactly is driving that US Dollar demand, as it relates to impact on bitcoin relative to other cryptocurrencies.

The point here is that tighter Fed policy leads to Dollar demand against bitcoin and other crypto, whereas Dollar demand from risk off flow, may lead to significantly more downside pressure on other cryptocurrencies relative to bitcoin.

Most of the other cryptocurrencies are more risk correlated given what these cryptocurrencies are trying to do. Bitcoin on the other hand is its own currency and its own monetary system, which arguably makes it attractive in risk off relative to the US Dollar, given its scarcity.

There is some evidence of this when looking at recent volume. Bitcoin volume has been turning back up, while ether volume has been declining in recent weeks.