LMAX Digital volumes have been feeling the effects from the distraction of World Cup and a holiday shortened week.

Total notional volume for Wednesday came in at $256 million, 25% below 30-day average volume.

Bitcoin volume printed $162 million, 23% below 30-day average volume. Ether volume came in at $35 million, 31% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,719 and average position size for ether at $1,1189.

Volatility has recovered off multi-month lows and is showing signs of wanting to turn up. We’re looking at average daily ranges in bitcoin and ether of $2,262 and $78 respectively.

Crypto markets continue to show encouraging signs of stabilization, with recent price action increasingly supporting the case that an important bottom may be forming.

Bitcoin has remained well supported on dips below the $60,000 area, while ETH continues to attract buyers below $1,600, suggesting longer-term investors are becoming more willing to accumulate despite an uncertain macro backdrop.

Risk sentiment has also improved modestly as geopolitical tensions in the Middle East have eased from recent extremes.

From a technical perspective, ETH remains particularly compelling. Our latest chart work highlights the potential formation of a double bottom on the daily chart, with the second trough continuing to develop.

Confirmation still requires additional follow-through, but a sustained move toward the $1,850 neckline would likely attract increased technical buying.

A decisive break above that level would project a measured move toward the $2,100 area while strengthening the argument that the current correction has established the next major cycle low.

The broader structural backdrop remains constructive. Each successive crypto cycle has produced progressively shallower drawdowns as institutional participation, regulatory clarity and market maturity continue to improve.

With ETH already having retraced roughly 70% from its 2025 record high despite continued growth in network adoption and infrastructure development, the scope for meaningful additional downside appears increasingly limited relative to the upside opportunity should macro conditions begin to improve.

Attention now shifts squarely to today’s U.S. employment report, which has taken on added significance under a Federal Reserve that is placing far less emphasis on forward guidance and much greater weight on incoming data.

We continue to view average hourly earnings as the most important component given Chair Warsh’s strong focus on inflation. A softer-than-expected report would likely weigh on the U.S. dollar, ease Treasury yields and provide another tailwind for digital assets.

Conversely, a stronger payrolls report accompanied by firm wage growth could generate near-term volatility, though we believe the downside reaction may prove more contained given how aggressively markets have already priced a hawkish Fed, resilient labor market and elevated inflation backdrop.