LMAX Digital volume cooled down on Wednesday after solid performance in Monday, Tuesday trade. Total notional volume for Wednesday came in at $571 million, 12% below 30-day average volume.

Bitcoin volume printed $334 million on Wednesday, 20% below 30-day average volume. Ether volume came in at $184 million, 11% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $12,472 and average position size for ether at 5,114.

Volatility has been consolidating at the low end of the range in 2022. We’re now looking at average daily ranges in bitcoin and ether of $1,689 and $142 respectively.

Things have cooled off into the latter half of the week after we had seen a nice run to the topside. It’s important to note that this shouldn’t be entirely unexpected after seeing such an impressive multi-session rally.

There has been some attention this week around the story of the $622 million in WETH and USDC that was stolen from Axie Infinity users. The hack is reportedly the largest crypto hack on record. But overall, a positive to see no fallout in the market from the news.

The fact that we can see such a story that hasn’t had much impact on price is a reflection of the growing maturity and scale in the crypto space. Of course, these hacks should not be happening and more work needs to be done on the security side. But we do take this all as a net positive given how resilient the market has been.

Overall, we recommend exercising caution with respect to the bullish moves in crypto. We still see the market correlating with US equities. And after such a big run over there, and considering plenty of macro risk out there, we suspect there could be another wave of risk off flow around the corner that weighs on stocks and spills over into crypto.