Total notional volume at LMAX Digital trended quite a bit lower in the previous week, consistent with what we are seeing in the broader market. Total notional volume from Monday through Friday came in at $2.7 billion, 59% lower than the week earlier.

Breaking it down per coin, Bitcoin volume came in at $1.8 billion in the previous week, off 59% from a week earlier. Ether volume dropped to $663 million, down 56% from the week earlier.

Total notional volume over the past 30 days comes in at $18.1 billion.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $6,934 and average position size for ether at $2,478.

Volatility continues to hold at yearly low levels. We’re looking at average daily ranges in bitcoin and ether of $1,567 and $125 respectively.

We’ve seen a nice little bounce in crypto assets in recent sessions. The move coincides with the recovery in US equities and broad sentiment,as Fed rate hike expectations are reduced.

As things stand, the correlation between crypto and stocks is still running strong. As investors feel better about a less aggressive path forward on rates, it has helped to open renewed appetite for crypto assets.

Still, overall, the outlook remains less than upbeat for the global economy. As much as the market would like to see a less aggressive rate hike path, if inflation data continues to shoot up, it will reintroduce downside pressure to risk assets.

Technically speaking, the latest recovery in crypto is nothing more than a minor correction within a very strong downtrend. The greater risk right now is for this bounce to be looking for the next lower top ahead of fresh downside.

We believe we are getting closer to that point when crypto assets break away from the correlation with stocks. But we don’t believe we are there just yet. We’re considering the possibility of deeper setbacks in the price of bitcoin down into the $14,000 area.