LMAX Digital volumes were marginally softer on Tuesday. Total notional volume came in at $206 million, 7% below 30-day average volume.

Bitcoin volume printed $80 million, 19% below 30-day average volume. Ether volume came in at $68 million, 1% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $5,638 and average position size for ether at $2,478.

Volatility has leveled out in recent sessions but remains subdued overall. We’re looking at average daily ranges in bitcoin and ether of $2,532 and $105 respectively.

The crypto market has extended its recent recovery, with bitcoin continuing to consolidate above the key $76k breakout zone and ETH poking back up above the $2,400 level.

Price action is constructive, with both assets holding gains despite a still uncertain macro backdrop, reinforcing the view that the market may be transitioning out of the prolonged weakness seen since Q3 2025.

The technical shift is notable, as sustained acceptance above these levels opens the door for a broader move toward $90k in bitcoin and above $3k in ETH.

From a sentiment perspective, the recent upside comes at a time when positioning had been extremely washed out.

The past two quarters were defined by persistent disappointment, particularly as strong narratives around institutional adoption and regulatory progress failed to translate into immediate price appreciation.

This disconnect appears to have resolved somewhat, with the recent rebound suggesting a healthier market structure following a period of consolidation and excess removal.

Macro and geopolitical developments have also played a role. Ongoing tensions around Iran and the Strait of Hormuz have supported demand for alternative stores of value at the margin, while a more mixed outlook for the US dollar and rangebound traditional markets have created a more favorable backdrop for crypto assets.

At the same time, resilient US economic data continues to anchor global risk sentiment, allowing crypto to participate in a broader stabilization across asset classes rather than trading purely as a high-beta risk proxy.

On a relative basis, crypto has started to outperform traditional assets, with bitcoin and ETH both running ahead of the S&P 500 and Gold over the past month.

This rotation dynamic is important, as it suggests capital is beginning to re-engage with the space after a period of underperformance, particularly as other asset classes pause following strong rallies.

Looking ahead, the focus will remain on whether crypto can sustain this breakout and build momentum.

Continued stability in macro conditions, alongside incremental progress on institutional flows and regulatory clarity, should support the case for further upside, though the market will still need to navigate headline risk from global geopolitics and shifts in broader risk appetite.