LMAX Digital volumes have been on the lighter side this week due to thinner holiday conditions. Total notional volume for Tuesday came in at $250 million, 23% below 30-day average volume.

Bitcoin volume printed $133 million, 29% below 30-day average volume. Ether volume came in at $64 million, 13% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $9,019 and average position size for ether at $2,103.

Bitcoin and ETH volatility have been trending down over the past several weeks. We’re looking at average daily ranges in bitcoin and ether of $3,144 and $156 respectively.

Crypto markets continue to grapple with a sense of disappointment as expectations for a strong Q4—and increasingly for a seasonal Santa rally—have failed to materialize.

Bitcoin, our primary proxy, has remained range-bound with limited follow-through after earlier highs, reinforcing a cautious near-term tone among traders. This underwhelming price action has weighed on sentiment, even as volatility remains relatively contained compared with prior corrective phases.

That said, stepping back from near-term noise, the broader backdrop for crypto remains notably constructive. 2025 has been a landmark year for adoption and market infrastructure, with bitcoin printing fresh record highs and ether finally surpassing its 2021 peak.

While the lack of momentum since those milestones has frustrated investors, the current consolidation increasingly looks like a necessary reset rather than a reversal of trend, allowing excess leverage and speculative froth to be cleared.

From a positioning perspective, ongoing choppiness should be viewed as an opportunity rather than a threat, particularly for longer-term allocators. Any additional downside is likely to be used to build exposure at what we would characterize as discounted levels, consistent with prior cycles.

Importantly, crypto continues to demonstrate a unique ability to endure sharp drawdowns that would imply structural failure in other asset classes, only to subsequently recover and push to new highs.

Ethereum has broadly tracked bitcoin’s corrective tone but retains strong medium-term optionality, supported by ongoing ecosystem growth and improving institutional engagement.

The market’s failure to immediately extend higher does not undermine the larger bullish setup; if anything, it sets the stage for the next meaningful upside extension once momentum re-engages, with higher long-term targets back in focus.

Looking beyond crypto-native factors, macro and geopolitical developments remain key swing variables. Expectations around global monetary easing, the path of US rates, and the broader risk appetite backdrop will continue to influence flows, while ongoing geopolitical uncertainty reinforces the appeal of scarce, non-sovereign assets like bitcoin.