LMAX Digital volume picked back up nicely on Tuesday after a slow start to the week. Total notional volume for Tuesday came in at $867 million, 17% above 30-day average volume.

Bitcoin volume printed $593 million on Tuesday, 29% above 30-day average volume. Ether volume came in at $178 million, 16% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $12,137 and average position size for ether at 5,173.

Volatility has been trending lower in 2022. We’re now looking at average daily ranges in bitcoin and ether of $1,969 and $159 respectively.

There was plenty of encouraging price action in crypto markets on Tuesday. And as per Tuesday’s report, we highlighted a number of positive fundamental developments that justified the move higher.

At the same time, overall, we’re still not going anywhere as far as direction goes. We’ve talked about the importance of bitcoin resistance in the form of the February high.

Until that level is taken out, all of this price action we’re seeing is nothing more than a consolidation that could lead to additional declines.

We also believe correlations with stocks are relevant in the short-term, especially in times of risk off flow.

We think we’re not out of the woods yet as far as stock market weakness in 2022 goes, which means we could see more selling of crypto as a result.

We don’t believe the market has appropriately priced the impact of more aggressive rate hikes from the Fed this year, and see risk for setbacks in stocks to intensify because of the policy normalization.

Ultimately, if this does play out, we also believe bitcoin and ether will be very well supported down around $25,000 and $1,800 respectively on the longer-term value proposition of crypto.