LMAX Digital volumes have been impressive this week. Total notional volume for Tuesday easily outpaced Monday’s $292 million showing, coming in at $358 million, 85% above 30-day average volume.

Bitcoin volume printed $271 million on Tuesday, 128% above 30-day average volume. Ether volume came in at $65 million, 27% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,516 and average position size for ether at $2,388.

Volatility has picked up ever so slightly after recovering from cycle lows in August. We’re looking at average daily ranges in bitcoin and ether of $707 and $46 respectively.

Price action on Tuesday was encouraging for crypto assets. Not only did we see a swift recovery after Monday’s pullback, we also saw this recovery accompanied by a healthy uptick in volume.

As per our report the other day, the market had been shaken up as the week got going on news FTX could soon be liquidating billions of dollars worth of crypto assets.

The court is expected to rule on this later today, though after digesting the news, the market was quick to rally back on the realization that the amount of bitcoin and ether to be sold wouldn’t be enough to prove disruptive, especially with the crypto assets likely to also be sold over an extended period of time.

Technically speaking, the latest price action is also encouraging with bitcoin setbacks once again exceptionally well supported on dips into the $25k area.

Overall, the recovery out from the 2022 low remains intact, with the structure constructive while the market holds up above $25k on a monthly close basis.

Crypto traders will also be wanting to pay attention to the US economic calendar today. Later today, we get the latest US CPI report.

If the data comes in soft, it will likely force yield differentials out of the US Dollar’s favor, which in turn, could offer more support to crypto assets.

If on the other hand the data come in hot, it will inspire more broad based demand for the US Dollar, which could invite renewed downside pressure on crypto assets.