LMAX Digital volumes were up a healthy amount on Wednesday following a slow start to the week. Total notional volume for Wednesday came in at $484 million, 48% above 30-day average volume.

Bitcoin volume printed $294 million on Wednesday, 46% above 30-day average volume. Ether volume came in at $126 million, 66% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,484 and average position size for ether at $2,411.

Market volatility has cooled off dramatically after an impressive run higher in early August. We’re looking at average daily ranges in bitcoin and ether of $2,467 and $133 respectively.

Wednesday’s release of an abysmal US JOLTs job openings inspired broad based currency gains against the US Dollar as the market priced in even more rate cuts for 2024.

Fed funds futures have jumped to an expectation of 113 basis points of cuts from 102 basis points of cuts earlier in the week.

This development has translated to yield differentials moving out of the US Dollar’s favor, which in turn has been providing some support for cryptocurrencies.

Unfortunately, there are other things going on that have offset demand from the yield differential shift. One of those things is a deterioration in investor sentiment and struggling US equities.

What also hasn’t helped matters is that September is the worst month of performance for both crypto and stocks. Crypto ETF outflows are only adding to the strain on the market right now.

Whether or not we continue to see short-term fallout in crypto assets remains in question. At the same time, it would be foolish to lose sight of the bigger picture which remains highly constructive.

Bitcoin and ETH have gravitated to exceptionally attractive levels for medium and longer-term players, all well aware of the value proposition and incredibly robust historical performance during the fourth quarter.

Technically speaking, both bitcoin and ETH have gone nowhere for many weeks and remain confined to a choppy consolidation within longer-term uptrends.