LMAX Digital volumes improved from Tuesday performance closing back in with 30-day average volume. Total notional volume for Wednesday came in at $364 million, just 4% below 30-day average volume.

Bitcoin volume printed $193 million on Wednesday, 4% below 30-day average volume. Ether volume printed $94 million, 13% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $5,655 and average position size for ether at 3,078.

Volatility has turned up from multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $835 and $67 respectively.

We’ve spent some time talking about how it’s been nice to see crypto doing its own thing in recent weeks, while also outperforming traditional assets.

We’ve also said that any intense setbacks in stocks, will likely prove to be a development too hard for crypto to ignore.

And as things are moving along on Thursday, this is the vibe we’re getting. US equity futures have rolled over quite a bit and are trading at fresh weekly lows.

The risk off flow is now proving too much for crypto assets to ignore as it once again exposes what many perceive to be a risk correlated emerging crypto market.

We think the reality of higher for longer rates in the US is proving to be a major disruption and the latest comments from Fed Kashkari haven’t helped matters.

On Wednesday, Kashkari offered up the first sign of panic when saying he was concerned rate hikes hadn’t slowed services inflation.

Technically speaking, we’ve also warned that inability for bitcoin to establish back above the August 2022 high in the $25,200 area, would ultimately keep the bigger picture pressure on the downside, leaving room for another topside failure.

Initial support for bitcoin comes in at $22,520, below which exposes a deeper drop back towards a retest of the February low at $21,365.