LMAX Digital volumes were lighter on Tuesday after an impressive Monday performance. Total notional volume for Tuesday came in at $304 million, 21% below 30-day average volume.

Bitcoin volume printed $184 million on Tuesday, 3% below 30-day average volume. Ether volume came in at $82 million, 45% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $9,234 and average position size for ether at $5,239.

Market volatility is finally showing signs of turning back up after trending lower since March. We’re looking at average daily ranges in bitcoin and ether of $2,332 and $146 respectively.

Now that a healthy bout of selling has played out, there are a number of reasons we should expect crypto assets to be better supported going forward.

The first of these reasons is the ETFs. We’ve already seen a successful launch of the bitcoin ETFs in 2024 and this will now be followed up by the imminent final SEC approval of the ETH spot ETFs.

The second reason comes from the monetary policy outlook. Ultimately, investors continue to pressure the Fed into more rate cuts than less in 2024.

Should this play out, it will more than likely invite an investor friendly, crypto friendly price action response.

The third reason we expect the market to be well supported is the onset of more regulatory clarity in 2024. This can be highlighted most recently by the introduction of key regulation in Europe (MiCA).

Finally, with Donald Trump now leading in the polls, there is added motivation to be wanting to buy crypto assets on account of investor friendly policies, both on a macro level and crypto level.

Technically speaking, we’ve identified previous bitcoin support at $56,500 as the key level to watch on a weekly close basis.

Provided bitcoin can hold above this level on a weekly close basis, the outlook remains highly constructive.