LMAX Digital volumes put in a strong performance on Wednesday. Total notional volume for Wednesday came in at $762 million, 122% above 30-day average volume.

Bitcoin volume printed $484 million on Wednesday, 154% above 30-day average volume. Ether volume printed $198 million, 90% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $6,684 and average position size for ether at 2,831.

Volatility has picked back up in recent sessions. We’re looking at average daily ranges in bitcoin and ether of $1,017 and $65 respectively.

The recovery in cryptocurrencies, led by bitcoin has been most impressive. Bitcoin has pushed back above $30k for the first time since April, and is now within a stone’s throw of retesting the yearly high just over $31k.

We believe the price action is exceptionally encouraging when bitcoin is leading the way, given the significance of bitcoin’s history and role within the crypto space. If there is bullish price action that is led by the price of bitcoin, it generally reflects a rally that is standing on solid fundamental ground.

What’s also been impressive about the latest run higher is that it has been accompanied by impressive volume. Volumes have been trending higher in recent sessions, but the fact that we have just seen a robust Wednesday performance in price that has also resulted in the highest volume in quite some time, is something that should not be taken lightly.

We believe the ongoing run of bitcoin ETF applications from some big names in the traditional financial markets space has served as a major endorsement for crypto, something that shines bright in the aftermath of the regulatory shakeup the other week.

We’ve also heard from the Fed Chair in his recent testimony, where he has acknowledged that crypto is a market he believes has staying power, while seeking the necessary regulatory framework to oversee the emergent asset class.

Technically speaking, if bitcoin can clear the 2023 high, it will open the door for a bullish continuation targeting the next major extension target up towards $40k.