LMAX Group digital asset volumes rebounded sharply on Wednesday. Total volume came in at $1.1 billion.

Breaking it down per coin, bitcoin volume came in at $920 million. Ether volume came in at $80 million.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $4,858 and average position size for ether at $2,434.

Volatility has ticked up a bit in recent sessions but remains in contraction mode overall since rebounding sharply from its August low. We’re looking at average daily ranges in bitcoin and ether of $2,093 and $85 respectively.

Bitcoin has staged a strong recovery after a sharp, short-lived drawdown, while Ethereum has outperformed and helped restore breadth across major digital assets. The market’s ability to absorb the initial de-risking without a sustained breakdown is an encouraging signal that underlying demand remains intact.

The rebound has brought Bitcoin back toward its September highs, which now represent the key resistance area. A decisive break and hold above that level would materially strengthen the case for a continuation of the broader recovery and reduce lingering concerns that the recent pullback marked something more consequential.

The principal driver has been a relief bid following the US midterms. Although the Democratic sweep initially prompted a risk-off reaction and raised questions about the near-term path for crypto-specific legislation, investors quickly concluded that a clearer political outcome—and divided government—reduces the risk of abrupt, market-unfriendly policy shifts.

With much of the result already priced in, the initial sell-off proved shallow and was rapidly absorbed. That behavior is more consistent with positioning adjustment than with a fundamental re-rating, and it has allowed risk appetite to rebuild as uncertainty recedes.

Traditional-market drivers have also turned supportive. The notable decline in oil has eased an important inflation-risk channel, giving investors room to reassess the degree of hawkishness embedded in Fed expectations.

Softer Treasury yields and a weaker dollar have improved the liquidity backdrop for duration- and risk-sensitive assets. For crypto, that means a less hostile yield-differential environment and greater willingness to buy dips rather than chase safety.

Crypto’s own resilience has been equally notable. The Binance hack produced a sharp but contained drawdown, yet there was no sustained deleveraging, exchange-run dynamics, or structural breakdown in the broader market.

That restraint is meaningful. Rather than triggering major repositioning, the event was largely treated as idiosyncratic, and the subsequent recovery suggests investors continue to distinguish between an exchange-specific shock and the health of the broader digital-asset complex.

Technically, we continue to view the recent pullback as a correction within an intact recovery structure. The market held the key support area that had been identified as the line in the sand, and the speed of the rebound reinforces the view that the next major cycle low is likely already in place.

Ethereum’s stronger bounce and improving momentum add a constructive tilt across the broader market. While ETF flows and macro data remain important watchpoints, sustained inflows, a firm hold above recent support, and a break above the September highs would provide confirmation that digital assets are positioned for a move toward fresh recovery highs.