LMAX Digital volumes were strong to start the week. Total notional volume for Monday came in at $1.1 billion, 39% above 30-day average volume.

Bitcoin volume printed $682 million on Monday, 39% above 30-day average volume. Ether volume came in at $251 million, 25% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $14,585 and average position size for ether at $4,087.

Market volatility is tracking at its highest levels since 2022. We’re looking at average daily ranges in bitcoin and ether of $2,946 and $184 respectively.

As we continue to highlight, the biggest short-term risk associated with bitcoin right now is the risk for a period of correction and consolidation following an explosive move in 2024 thus far.

Of course, we are all well aware of the primary drivers behind the outperformance in bitcoin and crypto assets. Overwhelmingly positive reception to the bitcoin spot ETFs in the US and the upcoming bitcoin halving event are at the top of the list.

But there are some other things going on that we believe are worth highlighting. On Monday, there was some buzz around the news that the UK’s FCA had removed objections to crypto ETNs, opening the door for more adoption.

Another interesting development relating to bitcoin’s latest push to a fresh record high, is the fact that the move has translated to a market capitalization in bitcoin that has pushed back above silver, into the eighth position amongst the world’s largest assets.

MicroStrategy’s Michael Saylor was out adding more fuel to the bitcoin run, saying he believed bitcoin would eventually surpass gold.

Getting back to risks, there are some who are concerned about too much optimism with respect to expectations the SEC will approve ether spot ETFs in 2024. While we don’t believe this should put too much of a dent in things, it is certainly something worth keeping on the radar.

The only other major risk to consider at the moment is the global macro and possibility that any major reversal in this record run in US equities could open the door for a widespread round of profit taking on all other major assets, including crypto.