LMAX Group digital asset volumes were solid on Tuesday. Total volume for Tuesday came in at $1 billion.

Breaking it down per coin, bitcoin volume came in at $908 million. Ether volume came in at $50 million.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $8,058 and average position size for ether at $3,307.

Volatility has been stable since surging back in August. We’re looking at average daily ranges in bitcoin and ether of $2,057 and $84 respectively.

Bitcoin remains confined to tight consolidation heading into Wednesday, with ether also struggling to establish a clear direction. Modest gains have yet to develop into a more meaningful bullish continuation, leaving digital assets waiting for a catalyst to break the near-term stalemate.

Today’s US inflation report is the immediate focus. The key distinction will be between an energy-driven increase in headline inflation and evidence of broader underlying price pressures. For crypto, the reaction in Treasury yields and the dollar should matter more than the headline reading alone.

Our view remains that the balance of risk is favorable for digital assets, given how much Fed hawkishness has already been priced in. That leaves less room for further hawkish repricing and greater scope for a reversal if underlying inflation comes in softer than feared. Lower US yields and narrowing interest-rate differentials could encourage dollar selling and provide a fresh tailwind for bitcoin.

Ether would also stand to benefit from an improvement in broader risk appetite, although a sustained recovery will require buying to extend beyond bitcoin. With little fresh crypto-specific news setting the direction, the immediate test is whether a more supportive macro backdrop can turn consolidation into renewed demand.

Geopolitics remains the main complication, with Middle East tensions and elevated energy costs threatening to prolong inflation concerns. Even so, our bias is that a contained core reading could offer more relief than an anticipated rise in headline inflation delivers damage. A materially hotter underlying result would challenge that view and extend the market’s holding pattern.