LMAX Digital volumes cooled off on Wednesday. Total notional volume came in at $172 million, 27% below 30-day average volume.

Breaking it down per coin, bitcoin volume came in at $79 million, 37% below 30-day average volume. Ether volume came in at $31 million, 17% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $6,202 and average position size for ether at $1,222.

Volatility is consolidating after a sharp rise out from multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $2,133 and $86 respectively.

Crypto markets remain subdued, with Bitcoin consolidating near the upper end of its recent range following the powerful August rebound.

Price action has admittedly become rather dull, though the ability to hold most of those gains despite a less supportive traditional-market backdrop reinforces the view that a major cycle low may already have been established in 2026.

We continue to expect the next meaningful move to be to the topside, although some additional range trading and volatility are possible before the breakout develops.

Bitcoin’s improving longer-term momentum and relatively uncrowded positioning are constructive, while Ether is also consolidating after a particularly strong August recovery and continues to display a bullish underlying structure.

The macro environment has offered little assistance. Rising oil prices and geopolitical tensions are feeding inflation concerns, pushing bond yields higher and weighing on equities.

Attention now shifts to the ECB decision and the latest US inflation reports, with hotter readings likely to support the dollar and tighter monetary-policy expectations, while softer data would provide a more favorable backdrop for crypto.

Encouragingly, crypto has demonstrated an increasing ability to stand on its own feet. Major digital assets have significantly outperformed equities over the past month, suggesting that the August advance was not simply another expression of broad risk appetite.

The continued expansion of tokenized real-world assets has provided another structural positive, reinforcing the case that blockchain adoption is progressing independently of short-term market fluctuations.

On policy, pressure continues to build for Congress to advance the CLARITY Act, though expectations for immediate progress remain restrained.

This should limit the downside associated with further delays, particularly as the SEC and CFTC have already taken meaningful steps toward clearer treatment of crypto assets. In our view, these regulatory efforts reduce the extent to which the market’s outlook depends on a single piece of legislation.