LMAX Group digital asset volumes were thin on Wednesday on account of holiday trade and tight ranges. Total volume came in at $290 million.

Breaking it down per coin, bitcoin volume came in at $210 million. Ether volume came in at $44 million.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $4,692 and average position size for ether at $2,359.

Volatility has been steady over the past several weeks. We’re looking at average daily ranges in bitcoin and ether of $2,107 and $91 respectively.

Bitcoin and Ether are both softer into Thursday, but our outlook is unchanged. Bitcoin is back near its 200-day moving average after briefly dipping below it on Tuesday.

We still see this area as an attractive entry point within the broader recovery structure off what we believe was the cycle low earlier this year.

Ether has so far stopped short of $1,980, where former resistance should now offer support.

A full retest remains possible, though we expect longer-term and crypto-native buyers to start adding exposure here. From that perspective, the pullback has already brought both assets into levels worth accumulating.

The immediate test is whether spot demand follows. Bitcoin largely sat out Wednesday’s tech-led equity rebound as spot ETF outflows continued.

A turn in those flows could provide a crypto-specific catalyst and give us more confidence that the market is absorbing the selling.

The catalyst could just as easily come from FX. The dollar has extended its rally as markets price in a December Fed hike and more tightening beyond it.

We think much of that hawkishness is already reflected in prices, leaving the balance of risk tilted toward profit-taking on dollar longs. A narrowing of US yield differentials would take pressure off crypto and could help bring buyers back.

Fed commentary and Friday’s US producer prices are the next tests for that view. The US–Iran conflict remains a swing factor through oil, where renewed supply pressure could keep inflation concerns elevated.

If those catalysts give the dollar little reason to extend its gains, we see scope for Bitcoin to lead a recovery from here.