Total notional volume at LMAX Digital recovered nicely in the previous week. Total notional volume from last Monday through Friday came in at $3.2 billion, 50% higher than a week earlier.

Breaking it down per coin, bitcoin volume came in at $2.2 billion in the previous week, 62% higher than the week earlier. Ether volume came in at $709 million, 59% higher than the week earlier.

Total notional volume over the past 30 days comes in at $19 billion.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $10,110 and average position size for ether at $4,406.

Market volatility has been cooling off since peaking out at a multi-month high in March. We’re looking at average daily ranges in bitcoin and ether of $2,939 and $162 respectively.

We’ve been encouraged by recent price action which shows bitcoin and crypto assets exceptionally well supported into the latest dip.

As per today’s technical insights, last week’s bullish close in the bitcoin price sets up the possibility the next higher low is already in place ahead of the next major upside extension to a fresh record high.

As far as the fundamentals go, we believe a lot of the recent demand comes from developments in the traditional markets. We had already warned this could be the case last week, and indeed, this is how things have been playing out.

As a reminder, last week we talked about how the balance of risk had been leaning towards the onset of a wave of broad based US Dollar selling given how aggressively the market had reduced Fed rate cut bets in 2024.

This reminder came ahead of the Fed decision and Friday’s US jobs report – both events carrying significant risk and both capable of moving the needle.

In the end, the Fed decision leaned more dovish, and the US jobs report was soft. What this meant was a shift back to pricing more rate cuts and the onset of broad based US Dollar selling as yield differentials were adjusted out of the US Dollar’s favour.

Of course, the fact that the US Dollar has come back under pressure has also meant currencies rallying across the board, which extends into bitcoin and crypto assets as well.

Moreover, we’ve also seen an accompanying bullish shift in sentiment, which still has the ability to be supportive of crypto assets given some ongoing correlation with risk appetite in the traditional markets.

As far as crypto stories go, the recent earnings beat at Jack Dorsey’s Block has been taken as a positive, both for the earnings beat itself and for the company’s transparency around its treasury strategy to buy bitcoin.