Total notional volume at LMAX Digital cooled off in the previous week. Total notional volume from Monday through Friday came in at $4 billion, 18% lower than the week earlier.

Breaking it down per coin, Bitcoin volume came in at $2.6 billion in the previous week, off 17% from the week earlier. Ether volume came in at $996 million, off 18% from the week earlier.

Total notional volume over the past 30 days comes in at $22.5 billion.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $11,496 and average position size for ether at $5,913.

Volatility has cooled off in 2022 after topping out in December. We’re now looking at average daily ranges in bitcoin and ether of $2,276 and $177 respectively.

We haven’t seen a whole lot of action in crypto markets over the past week or so. Price action has been consolidative. And given the downtrend off the record high from November 2021, this leaves the door open for deeper setbacks ahead.

At this stage, we can’t rule out the possibility for bitcoin to trade back down to retest the critical low from June 2020 at $28,800. In order to see signs of legitimate bullish momentum, we would need to see a break back above the February high around $46,000.

Fundamentally, we have begun to see a deterioration in the correlation with risk off flow in traditional markets, though the correlation has not been entirely broken just yet. Medium and longer term players have indeed been stepping in despite downside pressure in stocks.

At the same time, there is still a good portion of shorter-term participants in the market that we believe will look to sell if stocks take another turn for the worse, which ultimately weigh on crypto, at least for a moment, before we see those medium and longer-term players step back in.

And in the news, there has been some negative attention out of the UK, where the FCA has been cracking down. Last week, all Bitcoin cashpoints in Britain were ordered to shut down after being declared illegal.