LMAX Digital volumes were unsurprisingly soft on Tuesday, reflecting ongoing thin liquidity amid holiday trading conditions. Total notional volume for Tuesday came in at $169 million, 41% below 30-day average volume.

Bitcoin volume printed $106 million, 35% below 30-day average volume. Ether volume came in at $28 million, 56% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $9,080 and average position size for ether at $2,237.

Bitcoin and ETH volatility have been trending sharply lower over the past several weeks. We’re looking at average daily ranges in bitcoin and ether of $2,651 and $124 respectively.

As we close out 2025, crypto markets are ending the year on a softer note, with bitcoin and ether on track to finish down roughly 5% and 10% respectively. Performance over the year was uneven, marked by extended periods of consolidation and episodic drawdowns that reflected a broader reset in risk appetite.

That said, the year was far from directionless. Both bitcoin and ether managed to print fresh record highs earlier in 2025, underscoring underlying demand remained intact even as follow-through ultimately faded. The inability to hold those gains speaks more to macro and positioning headwinds—and some disappointment around a historically strong Q4 failing to materialize—than to any deterioration in long-term fundamentals.

From a crypto-specific standpoint, 2025 was defined by steady but unspectacular progress. Institutional engagement continued to deepen beneath the surface, with advances across custody, settlement, and tokenization infrastructure rather than speculative activity driving headlines.

Regulatory developments moved incrementally in a constructive direction across several major jurisdictions. While progress was slower than many market participants had hoped, the reduction in policy uncertainty helped lower tail risks and set clearer expectations for future participation, with hopes increasingly shifting toward more decisive frameworks in 2026.

Traditional markets played a central role in shaping crypto price action throughout the year. Restrictive financial conditions, elevated real yields, and attractive returns in cash and fixed income limited capital rotation into non-yielding assets like bitcoin.

One constructive signal late in the year has been gold’s resilience, with bitcoin historically showing a tendency to follow gold’s trend with a lag during certain macro regimes. While the relationship is far from consistent, past episodes suggest that sustained strength in gold can eventually support bitcoin as investors broaden their search for alternative stores of value.

The global political backdrop further reinforced investor caution. Ongoing geopolitical tensions, election cycles, and uneven global growth kept risk premia elevated and encouraged a focus on liquidity across asset classes.

At the same time, these dynamics continued to highlight the strategic appeal of neutral, borderless financial infrastructure. Interest from policymakers and large institutions remained intact, even if deployment decisions were frequently deferred.

Stepping back, 2025 increasingly looks like a year of unwind and reset rather than disappointment. Leverage normalized, speculative excesses were worked off, and the ecosystem matured quietly while prices lagged.

Looking ahead, optimism is building around 2026. With expectations for more decisive regulatory clarity, improving macro visibility, and clearer institutional pathways, the groundwork appears in place for broader adoption and a potentially more constructive phase for crypto markets in the year ahead.