LMAX Digital volumes were impressive as the work week got going. Total notional volume for Monday came in at $3.2 billion, 39% above 30-day average volume. Bitcoin volume was up 28% from 30-day average volume, coming in at $1.6 billion on Monday, while Ether volume continued to surge, up 61% from 30-day average volume, coming in at $914 million.

Average trade sizes held steady and within familiar ranges for both Bitcoin and Ether on Monday. Bitcoin average trade size was around $12,000, while Ether average trade size was around $8,000. Total notional volume at LMAX Digital over the past 30 days comes in at $69 billion. The average daily trading range for BTCUSD is $4,037. The average daily trading range for ETHUSD is $369.

Weakness in crypto associated with Elon Musk and Tesla has been grossly overstated in our view, with most of the recent shakeup attributed to an overdue technical correction following parabolic price moves in 2021 and macro risk associated with a potential shift in Fed policy that would weigh on risk correlated assets.

A resurgence in global risk appetite has definitely been helping crypto markets into Tuesday. Fed officials continue with their efforts to calm investor nerves, reassuring market participants that elevated inflation is nothing to worry about. This has lent itself to a more risk supportive, crypto friendly backdrop where lower for longer policy remains in play.

Technically, we’ve highlighted the significance of support in the $42,000 area. This is a previous resistance zone and if broken, there would be scope for additional downside into the $34,000 area, a measured move downside extension target. As far as resistance goes, there is nothing to really speak of until back above $60,000. Anything between $42,000 and $60,000 is classified as choppy consolidation.

Some stories getting attention in the news include an FTC (Federal Trade Commision) publication on crypto scams, Bank of America joining the Paxos blockchain-based settlement network for equities in an effort to settle stock trades in minutes rather than days, and the IRS partnership with TaxBit to help fill the knowledge gap on crypto.