LMAX Digital volumes ticked up on Wednesday despite the ongoing super thin trading conditions. Total notional volume came in at $170 million, 9% above 30-day average volume.

Bitcoin volume printed $114 million, 38% above 30-day average volume. Ether volume came in at $12 million, 56% below 30-day average volume.

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 $1,748.

Volatility remains extremely suppressed, at its lowest levels since Q4 2023. We’re looking at average daily ranges in bitcoin and ether of $1,332 and $53 respectively.

Bitcoin remains locked in exceptionally subdued trade, with daily ranges compressed to their narrowest levels since the fourth quarter of 2023. August liquidity and reduced participation have contributed to the directionless conditions.

Still, the absence of renewed selling pressure is notable after the severe decline from last year’s record highs. The broader third-quarter price action remains encouraging, with bitcoin increasingly appearing to consider the possibility that an important base has formed following months of intense pressure.

Recent ETF inflows have helped stabilize sentiment, although Strategy’s continued bitcoin sales and the lack of progress on US crypto legislation remain important constraints. Bitcoin is not yet generating meaningful upside momentum, but it has at least stopped responding aggressively to negative developments.

ETH is trading around $1,900 and continues to provide the more interesting signal beneath the surface. The constructive July close in ETHBTC suggests investors are becoming more willing to move beyond the relative safety of bitcoin and add risk elsewhere in the digital-asset market.

A sustained trend reversal in the ratio would offer stronger evidence that confidence and liquidity are returning across the crypto complex. Historically, relative strength in ETH has been an important ingredient in broader participation beyond bitcoin.

The traditional-market backdrop remains mixed but manageable. An in-line US CPI report has reduced expectations for a September Federal Reserve rate increase, while strength in technology equities is supportive of risk appetite.

At the same time, elevated oil prices, uncertainty surrounding Iran and the Strait of Hormuz, and today’s US PPI report continue to present inflation and interest-rate risks. These remain potential catalysts for a breakout from the market’s unusually compressed range.

For now, the key levels remain $67,300 in bitcoin and $2,000 in ETH. Sustained breaks above these thresholds would strengthen the basing thesis, encourage sidelined capital to return and potentially unlock a much broader recovery.

Until then, the market remains constructive but unconfirmed. Compressed volatility suggests the eventual move could be meaningful, but price still needs to provide confirmation.