LMAX Digital volumes cooled off on Tuesday. Total notional volume for Tuesday came in at $325 million, 22% below 30-day average volume.

Bitcoin volume printed $173 million, 20% below 30-day average volume. Ether volume came in at $58 million, 29% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $8,590 and average position size for ether at $1,661.

Volatility is tracking at yearly lows, with bitcoin volatility at its lowest since November 2024 and ETH at its lowest since February 2024. We’re looking at average daily ranges in bitcoin and ether of $2,609 and $81 respectively.

The other day, we discussed correlations and the constructive shift in crypto market developments. The key takeaway was that crypto has shown strength in recent weeks, despite what had been persistent downside pressure on stocks.

We highlighted the growing maturity in the crypto market, with bitcoin increasingly recognized as a valuable store of value and diversification asset. Diversification remains crucial, as easing trade and tariff tensions have brought broader risk-on flows to traditional markets, also benefiting crypto.

It’s evident crypto can move on its own fundamentals and can generate interest during periods of risk on and risk off in traditional markets.

We’re still in the early stages of institutional and retail adoption, and with a more crypto-friendly policy framework taking shape in the U.S., we can expect increased demand for bitcoin and other crypto assets.

Bitcoin’s price action has been impressive all year, outperforming stocks. Now, Ethereum is showing promising signs, with ETH bottoming out and climbing above its 50-day SMA against the US Dollar for the first time since January.

The recent uptick in risk sentiment, driven by China’s liquidity injection, has further supported bitcoin and ETH. Looking ahead, markets will focus on the Fed’s upcoming decision, where rates are expected to remain steady, but a dovish, investor-friendly message could spark additional crypto demand.