LMAX Digital volume recovered on Wednesday, with volatility around the FOMC decision helping things along. Total notional volume for Wednesday came in at $1.4 billion, 12% above 30-day average volume.

Bitcoin volume printed $639 million on Wednesday, 4% above 30-day average volume. Ether volume came in at $579 million, 42% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $9,043 and average position size for ether at 8,173.

Volatility has been slowly picking up since finding a bottom in July. We’re now looking at average daily ranges in bitcoin and ether of $3,083 and $305 respectively.

It’s all a little surprising. Risk markets have been in rally mode post this latest Federal Reserve decision in which the central bank clearly laid out a less investor friendly policy outlook for 2022 and beyond.

And while we don’t believe the correlation between crypto and traditional market risk sentiment is one that will necessarily hold up medium and longer-term, in the short-term, there is definite sensitivity.

It seems risk markets were happy enough to hear some dovish speak from Fed Chair Powell in the aftermath, and this has resulted in a resurgence in risk appetite that has benefited crypto into Thursday.

As things stand, we believe crypto markets will continue to track along with the direction in US equities into the end of the year and it will be important to continue to keep an eye on these moves.

Technically speaking, both bitcoin and ether have been in correction mode following breaks to fresh record highs in November, and overall, the outlook remains constructive with these cryptocurrencies still in position to put in higher lows ahead of the next major moves to the topside.