LMAX Group digital asset volumes closed out the previous week on strong footing. Total notional volume for Friday came in at $1.2 billion.

Breaking it down per coin, bitcoin volume came in at $1.1 billion. Ether volume came in at $45 million.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $8,577 and average position size for ether at $3,335.

Volatility is trying to bottom out after a period of cooldown. We’re looking at average daily ranges in bitcoin and ether of $1,955 and $81 respectively.

Bitcoin is attempting to recover after last week’s pullback, with Ether also finding buyers as the market tests demand around important support zones.

Our view remains that a correction after the recent strong gains was healthy and necessary. A sustained recovery from these levels would strengthen the case that the setback represents consolidation within a broader advance.

The constructive outlook rests on continued adoption and progress toward clearer regulation, with both Bitcoin and Ether still well below their record highs from last year.

Pullbacks provide an important test of that outlook: buyers absorbing supply during periods of uncertainty offer more convincing evidence of underlying demand than rising prices alone. Ether’s participation will be particularly important in judging whether renewed confidence is spreading beyond Bitcoin.

Institutional flows remain the immediate area to watch. Recent redemptions from Bitcoin and Ether exchange-traded funds show that dip buying has yet to translate into a convincing return of institutional demand, with Ether experiencing particularly persistent withdrawals.

Stabilization in those flows would give the recovery a firmer foundation and help distinguish sustained accumulation from a temporary rebound.

The macro backdrop could provide an additional tailwind. Our working view is that Fed hawkishness is largely priced in, leaving the balance of risk tilted toward a reassessment that brings dollar selling and lower yields.

Softer oil prices offer some relief from inflation concerns, although renewed attacks on Saudi infrastructure and uncertainty surrounding the proposed Russia–Ukraine energy ceasefire leave that improvement vulnerable.

US inflation is therefore the key test this week. A softer outcome would support our thesis and improve conditions for digital assets, while renewed price pressure could delay that adjustment.

With the US cash Treasury market closed today, early moves may lack their usual confirmation from yields; the more meaningful signal will be whether Bitcoin holds its recovery, Ether follows through and institutional selling begins to ease.