LMAX Group digital asset volumes were just a little thinner overall than Monday, tough we did see an uptick in Ether volume. Total volume from Tuesday came in at $588 million.

Breaking it down per coin, bitcoin volume came in at $408 million. Ether volume came in at $102 million.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $4,704 and average position size for ether at $2,372.

Volatility has been steady over the past several weeks. We’re looking at average daily ranges in bitcoin and ether of $2,153 and $92 respectively.

Bitcoin is back above its 200-day moving average after briefly dipping below it on Tuesday. That puts the market squarely in the support zone we’ve been highlighting in recent updates.

Ether stopped just short of $1,980, where former resistance should now offer support. A full retest is still possible, but we’re close enough to see an attractive accumulation zone for both assets.

With Bitcoin approaching $70,000 and Ether trading around $2,000, we expect longer-horizon buyers to add exposure. Daily momentum looks oversold, and the broader base off what we believe were the cycle lows earlier this year remains intact.

That combination leaves room for an overdue bounce to develop into a more substantial recovery over the final weeks of the year.

The near-term test is whether spot demand returns. Bitcoin recently lagged a rebound in US equities as spot ETF outflows continued, and Ether funds also saw redemptions.

A stabilization in ETF flows would give us more confidence that buyers are stepping in at these levels.

On the macro side, Tuesday’s slightly hotter US inflation print has done little to change our view. A December Fed hike is already well priced, and we see limited scope for sustained dollar upside unless markets build a stronger case for further tightening.

From here, we think the balance of risk favors profit-taking on dollar longs. A softer dollar could help revive risk appetite and bring buyers back into crypto.

Renewed threats to Gulf shipping and energy infrastructure remain the clearest near-term risk. A sustained rise in crude could keep inflation concerns in focus and delay a broader recovery in risk appetite.

With Bitcoin already back above its 200-day average, the next test is whether it can hold that level and build on the rebound. Firmer spot demand and a softer dollar would strengthen the case that a year-end recovery is underway.