LMAX Digital volumes were up across the board on Tuesday. Total notional volume for Tuesday came in at $585 million, 40% above 30-day average volume.

Bitcoin volume printed $299 million, 53% above 30-day average volume. Ether volume came in at $214 million, 29% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $8,411 and average position size for ether at $4,203.

Market volatility has been trending lower since March but is finally show some signs of wanting to bottom out. We’re looking at average daily ranges in bitcoin and ether of $1,976 and $147 respectively.

The big news of the day has unquestionably come from the headline the SEC will be closing its investigation into whether or not ETH is considered a security.

The recent approval of the ETH spot ETFs in the US had encouraged this prospect, and this latest announcement only helps to further encourage the outlook for Ethereum and the broader crypto space.

This has clearly been reflected in overall price action on Wednesday, with a struggling bitcoin managing to build some momentum on the back of the story.

As per our technical insights, the bitcoin $65k area is a significant short-term support zone. For the moment, dips have been well supported below the level and the market hasn’t been wanting to close sub-$65k.

This keeps the immediate focus on the topside, though we’ll need to see another healthy push back above $67,350 to suggest the market is done with the latest correction.

On the macro front, Tuesday’s softer US retail sales data has fueled expectations the Fed will look to cut more in 2024, which has opened broad based selling in the US Dollar, and in turn, has also been supportive of crypto assets.

At the same time, Fed communications have been less dovish of late, and US equities continue to look like they could be in for a nasty reversal off record highs.

This leaves us recommending a more cautious approach going forward, at least until we get some more bullish confirmation from bitcoin and eth.