LMAX Digital volumes were off quite a bit on Monday, though a lot of this was attributed to thinner holiday trade. Total notional volume for Monday came in at 214 million, 43% below 30-day average volume.

Bitcoin volume printed $134 million on Monday, 36% below 30-day average volume. Ether volume came in at $52 million, 54% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $6,208 and average position size for ether at 2,618.

Volatility is still struggling to show signs of picking back up. We’re looking at average daily ranges in bitcoin and ether of $713 and $65 respectively.

Crypto continues to trade on all things global macro and is mostly fixated on the direction in the US Dollar. The Buck has found a fresh round of renewed demand on the back of last week’s strong US NFP report and hawkish Fed speak. Any hopes for a Fed pivot have been dashed and everything is under pressure against the US Dollar at the moment.

Of course, the accompanying round of risk off flow has also been connected to the driver for broad Dollar demand, and this risk off flow is adding even more downside pressure on crypto, with many participants still trading the asset class like an emerging market.

As far as crypto specific stories go, on Monday, the OECD submitted a framework to increase international transparency of crypto to the G20. The G20 will be reviewing the 100-page Crypto Asset Reporting Framework (CARF), along with suggested amendments at the next meeting in Washington, on Wednesday and Thursday of this week.

Looking ahead, the market will also be very focused on what comes out of this week’s US inflation readings and the upcoming Fed Minutes. We don’t believe there will be any surprises here, which only further supports the case for additional downside pressure on crypto assets over the near term.