LMAX Digital volumes shot up in a big way on Tuesday. Total notional volume for Tuesday came in at $613 million, 102% above 30-day average volume.

Bitcoin volume printed $358 million on Tuesday, 97% above 30-day average volume. Ether volume came in at $185 million, 147% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $6,937 and average position size for ether at $2,859.

Market volatility has been trending lower since peaking in August. We have however seen some evidence of volatility finally wanting to turn back up a bit in recent sessions.

Average daily ranges for bitcoin and ether are $2,124 and $113 respectively.

The crypto market has been very excited about its against the odds positive September performance, especially as we come into what has historically been impressive October performance and a spectacular Q4 performance for bitcoin.

We are however off to a rocky start as October gets going, with the market taking a big hit from the latest escalation in geopolitical tension following the Iran attack on Israel.

In reality, as bitcoin continues to mature and market participants become more acutely aware of bitcoin’s properties and value proposition, we believe bitcoin will be well positioned to find plenty of demand in such risk off situations.

But for the time being, because bitcoin is associated as a young, maturing, emerging asset, it continues to share correlations with risk assets.

There have been other drivers of this early October weakness as well. Recent Fed speak, particularly from the Fed Chair has been a little less dovish than investors would like to hear, which has opened some shift in yield differentials back towards the Buck.

Technically speaking, Tuesday’s sharp setbacks have done nothing to compromise the bigger picture outlook which continues to suggest bitcoin will be exceptionally well supported on dips within a bullish consolidation that is expected to lead to an eventual breakout to fresh record highs, quite possibly in Q4.