Total notional volume at LMAX Digital was up in the previous week. Total notional volume from last Monday through Friday came in at $2.2 billion, 1.96% higher than the week earlier.

Breaking it down per coin, Bitcoin volume came in at $1.22 billion in the previous week, up 1.24% from a week earlier. Ether volume came in at $500 million, 9.74% lower from the week earlier.

Total notional volume over the past 30 days comes in at $8.54 billion.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $4,925 and average position size for ether at $2,491.

Volatility is finally showing signs of turning up from multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $698 and $63 respectively.

The crypto surge of early 2023 has extended through the weekend, with bitcoin and ether up as much as some 40% in January alone. The moves are extremely impressive and the catalysts could be coming from many different places.

Certainly, the outlook for the global economy has been looking up. When we look across the major continents we’re seeing China getting back on track, the European economy reversing course, and US economic data coming in healthy overall.

On the crypto front, whether or not we have seen the bottom seems to be of less concern to investors who are more focused on the reality that we are likely near, or have already reached the next long-term bottom.

There is also a feeling that the worst has already been priced in as far as fallout from all of the crypto implosions of 2022. And at the same time, the market can start looking ahead to positive price catalysts in the form of the bitcoin halvening and the Ethereum Shanghai upgrade that will enable staking withdrawals.

Of course, while we remain highly optimistic about the outlook for the space over the medium and longer-term, we also continue to believe there still could be risk for pullback over the short-term.

Technical studies are screaming out for a pullback to allow for severely stretched indicators to unwind. Fundamentally, the run higher in stocks is somewhat suspect given the ongoing hawkish messaging from the Fed. Meanwhile, we still see risk associated with crypto fallout from 2022, along with risk associated with uncertainty around regulatory response.

So all in, we continue to look for setbacks to be exceptionally well supported, but we would not rule out the possibility for another healthy round of setbacks before the market finally is ready to turn up in a material way.