LMAX Digital volume cooled off on Tuesday. Total notional volume for Tuesday came in at $979 million, 20% below 30-day average volume.

Bitcoin volume printed $548 million on Tuesday, 12% below 30-day average volume. Ether volume dropped to $276 million, 28% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $10,037 and average position size for ether at $7,818.

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 $3,273 and $303 respectively.

Australia is making headlines this week, as the country is said to be weighing plans for an RBA-issued digital currency alongside regulation of the crypto market. Still, this hasn’t has much impact on broader price action.

Overall, things have been mostly quiet and as we approach year end, most of the focus is on bigger picture macro themes. Global sentiment and performance in traditional markets will be key as far as short-term direction for crypto is concerned.

Should we see more risk on flow driving US equities to fresh record highs, we suspect this will be accompanied by a concurrent wave of demand for crypto assets.

If on the other hand the market once again becomes concerned about the omicron variant and a less investor friendly Fed outlook for 2022, we believe this will result in a risk liquidation that crypto will not be immune to, resulting in renewed downside pressure.