LMAX Digital volumes have been on the lighter side in this US holiday shortened week. Total notional volume for Tuesday came in at $486 million, 21% below 30-day average volume.

Bitcoin volume printed $276 million, 20% below 30-day average volume. Ether volume came in at $117 million, 22% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $9,452 and average position size for ether at $2,837.

Bitcoin and ETH volatility has been in cool down mode off recent multi-month highs. We’re looking at average daily ranges in bitcoin and ether of $3,990 and $202 respectively.

Bitcoin has traded with a steadier tone over the past 24 hours, recovering modestly after its recent volatility as markets digest last week’s heavy liquidations and lingering macro uncertainty.

The stabilization reflects a mix of short-covering and reduced derivatives leverage, with funding rates normalizing and spot flows turning slightly more constructive.

ETH has broadly tracked the move, outperforming marginally as activity in staking and L2 ecosystems shows signs of returning after several subdued sessions.

The crypto complex remains sensitive to global macro drivers, particularly shifting expectations around U.S. interest-rate policy. Softer Treasury yields and a pullback in the dollar have offered some relief, though markets remain cautious ahead of upcoming U.S. data releases that could recalibrate rate-cut probabilities.

Risk sentiment across equities has also improved slightly, helping lift crypto as positioning had become notably defensive following last week’s drawdown.

Within crypto, derivatives markets continue to dominate the narrative. Traders have been active in downside hedges following the recent selloff, but there are also signs of longer-dated bullish structures being accumulated, suggesting that while confidence is fragile in the near term, some investors are positioning for a medium-term recovery.

Liquidity conditions remain thinner than average, amplifying swings and keeping intraday volatility elevated.

Political developments remain a secondary but meaningful driver. Easing geopolitical tensions and signs of improved dialogue between major economies have helped reduce some of the broader risk aversion, although traders remain alert to any headlines that could destabilize markets.

Overall, crypto appears to be entering a consolidation phase, with short-term direction likely to hinge on U.S. data and global risk appetite while the longer-term narrative continues to attract selective strategic interest.