LMAX Digital volumes saw a nice jump on Wednesday. Total notional volume for Wednesday came in at $802 million, 95% above 30-day average volume.

Bitcoin volume printed $422 million, 108% above 30-day average volume. Ether volume came in at $318 million, 113% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $8,063 and average position size for ether at $3,938.

Volatility is showing signs of finally wanting to turn back up after trending lower since peaking in March. We’re looking at average daily ranges in bitcoin and ether of $2,125 and $145 respectively.

Crypto assets have been under pressure in recent days, though overall, it’s important to take the moves in context, with the bigger picture trend still highly constructive.

In our technical insights, we’ve highlighted important short-term support for bitcoin at $66k, which has held nicely into the latest dip.

If the downside pressure persists and we see a breakdown below $66k, it will open the door for the possibility of a more meaningful correction towards $55k. But if this does play out, we believe any additional setbacks will be limited.

Key short-term resistance comes in at $72k. A break back above this level will suggest bitcoin is getting ready for a fresh record high and push towards the next big barrier at $100k.

Fundamentally speaking, some of the latest selling can be attributed to a hawkish leaning Fed communication which showed a dot plot that still only expects one rate cut in 2024.

Yet even here, the dot plot and Fed communication can be taken as stale. Wednesday’s softer US CPI data makes an argument for more rate cuts than less this year and wasn’t factored into the Fed decision.