LMAX Group digital asset volumes were strong on Tuesday. Total volume came in at $1.2 billion.

Breaking it down per coin, bitcoin volume came in at $1.1 billion. Ether volume came in at $44 million.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,079 and average position size for ether at $2,951.

Volatility has been picking up since bottoming out in August. We’re looking at average daily ranges in bitcoin and ether of $1,941 and $88 respectively.

Digital assets remain in a period of consolidation, with Bitcoin trading around $83,000 and ETH near $2,450. While momentum has been subdued, the continued willingness of buyers to absorb setbacks supports our view that the market is building a base for another advance.

The recovery alongside firmer global equities offers encouragement, though a decisive breakout remains necessary to strengthen bullish conviction.

We continue to see the macro backdrop as a potentially important source of support through the final quarter. Expectations for an October Fed hold have strengthened, while lower Treasury yields and a softer dollar are easing some of the pressure on digital assets.

This is a moderation of the perceived urgency for further tightening, with scope to encourage additional demand should the repricing continue.

At the same time, the resilience highlighted in recent months strengthens our conviction that the investment case extends beyond favorable financial conditions. Periods of outperformance despite macro headwinds suggest that demand can increasingly reflect the asset class’s own value proposition.

Geopolitics nevertheless remains a source of volatility, with tensions involving Iran and attacks on regional energy infrastructure threatening renewed oil inflation and potentially limiting the improvement in monetary policy expectations.

Adoption remains a meaningful structural tailwind, with this year bringing clearer institutional recognition of blockchain’s potential to support faster settlement and markets that operate around the clock. The push to bring traditional assets on chain reinforces that direction and provides an important backdrop for Ethereum’s investment case.

The opportunity for ETH will depend on how much of this activity reaches its ecosystem and translates into sustained demand for the asset.

Our outlook therefore remains constructive, with consolidation and continued demand on dips leaving room for renewed upside. Technically, a sustained Bitcoin move above $84,250 would strengthen the case for fresh bullish momentum and bring the September high just ahead of $88,000 back into focus.

A broader advance that includes stronger participation from ETH would add conviction that the recovery is gaining traction.