LMAX Digital volumes cooled off from Monday levels but were healthy overall on Tuesday. Total notional volume for Tuesday came in at $637 million, 3% above 30-day average volume.

Bitcoin volume printed $430 million on Tuesday, 36% above 30-day average volume. Ether volume came in at $44 million, 42% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $11,208 and average position size for ether at $2,625.

Market volatility remains elevated but has been cooling off since peaking out the other week. We’re looking at average daily ranges in bitcoin and ether of $4,089 and $182 respectively.

Monday’s market pullback is now looking like nothing more than a blip. We had talked a lot about this earlier in the week and indeed, we are getting confirmation.

The major takeaway right now is that bitcoin is trading in a very strong uptrend and is currently in a consolidation phase within the uptrend.

The range bottom is down around $89k and any setbacks ahead of that level are classified as nothing more than a correction within a bullish consolidation.

What this also means is that the focus remains on an expectation for additional record highs, with the recent push towards $110k setting the stage for the next major upside extension targeting the $130k area.

Indeed, a break back below $89k would delay the bullish structure, potentially exposing a deeper drop into the $70-75k area. But any setbacks below $70-75k would be short-lived in favor of a resumption of the longer-term uptrend.

Another chart worth keeping an eye on is the ETHBTC chart. This is a market that has been beaten down since 2021 and could be looking to reverse course in the weeks ahead.

As a reminder, ETH record highs have a way of following bitcoin record highs. And after seeing bitcoin finally take out the 2021 record high in 2024, we believe this should pave the way for ETH to start making its own bullish breakout for a retest of its record high from 2021.

Ethereum is at the forefront of decentralized finance and is the home of the major stablecoins. There is not much competition when it comes to the tokenization of real world assets and this is being backed up by support of Ethereum from major institutions around the globe.

As far as today goes, the market will be curious to see what comes of the Fed policy decision. But as things stand, today’s event risk has been well telegraphed, with no moves expected at the central bank, leaving little in the way of any major volatility risk from the decision.