LMAX Digital volumes cooled off on Tuesday after an explosive Monday performance, but were still well above average volumes.

Total notional volume for Tuesday came in at $475 million, 22% above 30-day average volume.

Bitcoin volume printed $260 million on Tuesday, 18% above 30-day average volume. Ether volume came in at $138 million, 28% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $9,059 and average position size for ether at $3,700.

Market volatility has accelerated in recent sessions, now back to about halfway between yearly high and low levels. We’re looking at average daily ranges in bitcoin and ether of $3,092 and $184 respectively.

Crypto assets are doing a good job recovering after some intense downside price action in recent days.

There is no doubt, the fallout we had seen had been triggered on macro factors, as investors panicked about the outlook for the global economy.

The combination of softer US economic data, massive carry unwind, and escalating geopolitical tension proved to be a nasty combination that could not be ignored.

Having said that, it’s also important to highlight the fact that bitcoin remains confined to a very well defined uptrend as per today’s technical insights.

The reality is US equities had been extending record highs at a relentless pace and irrespective of any negative drivers, were already at risk for a very healthy correction.

The other reality yet to show itself, is the reality that any additional fallout in US equities should translate to a less intense fallout in bitcoin.

We have spent a lot of time highlighting bitcoin’s value proposition as a store of value. Indeed, it is not surprising to see bitcoin sell off on an initial wave of panic in global markets.

But now that this wave has played out, we believe cooler heads will prevail and buyers will be happy to step in and support the asset into any additional dips.

As a reminder, bitcoin is outperforming all other major assets in 2024, up 35% year-to-date, as compared to gold, up a more modest 12% year-to-date, and the S&P500, up about 8% year-to-date.