LMAX Digital volumes have been lighter amid tight trading conditions and seasonally thin summer activity. Total notional volume for Tuesday came in at $131 million, 11% below 30-day average volume.

Bitcoin volume printed $72 million, 10% below 30-day average volume. Ether volume came in at $11 million, 52% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $4,796 and average position size for ether at $1,688.

Volatility remains subdued, with average daily ranges in bitcoin and ether falling to $1,216 and $44 respectively, their lowest levels since late 2023.

Crypto markets remain locked in exceptionally tight ranges, with bitcoin and ether continuing to consolidate amid the lowest average daily volatility since late 2023.

Price action still feels directionless on the surface, but the tone underneath is becoming more constructive as selling pressure eases and demand gradually rebuilds following months of weakness.

Bitcoin remains within reach of the key $67,300 resistance level, while ether continues to challenge the psychologically and technically important $2,000 area.

A sustained break through these levels would strengthen the case that the cycle low is in place and could release pent-up demand from investors who have remained cautious after the prolonged drawdown.

The market has also shown encouraging signs of decoupling from equities and traditional risk correlations. Crypto has recently held up better during periods of equity weakness, while outperforming when broader risk sentiment improves.

If sustained, this would reinforce the case for bitcoin and other crypto assets as a distinct and potentially uncorrelated allocation rather than simply a higher-beta expression of the technology trade.

Policy developments provide another potential catalyst. The White House is expected to host crypto and prediction-market executives today, keeping attention on efforts to advance US regulatory clarity when lawmakers return in September.

This follows the SEC’s proposed crypto framework, including tailored exemptions and a potential safe harbor, adding to the increasingly constructive regulatory backdrop.

The July FOMC minutes are also due later today and could influence crypto through the US dollar and Treasury yields. Any less-hawkish signal would likely reinforce dollar weakness and provide additional support for bitcoin and ether, while much of the adverse policy risk already appears reflected in prices.

Meanwhile, one leading quantitative research firm reports that bitcoin spot demand is turning positive for the first time since February, a shift that has historically been followed by a median 18.1% gain over 60 days with a 78% success rate, adding weight to the constructive outlook heading toward September and year-end.