LMAX Digital volume got off to a very impressive start this week. Total notional volume for Monday came in at $1.9 billion, 180% above 30-day average volume.

Bitcoin volume printed $913 million on Monday, 151% above 30-day average volume. Ether volume came in at $690 million, 199% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,385 and average position size for ether at 5,186.

Volatility has been trending lower as we come into 2022. We’re now looking at average daily ranges in bitcoin and ether of $2,355 and $233 respectively.

All of the volatility out there has welcomed tremendous volume to start the week. Unfortunately, the sentiment driving volatility has been bearish sentiment, with global markets continuing to get hit in anticipation of less investor friendly Fed policy.

We expect crypto will continue to be influenced by the direction in US equities over the coming days. But as we also continue to say, we see this correlation breaking down looking out beyond the short-term.

Based on our projections of what could be a realistic additional decline for stocks in the days ahead, we believe preparing for the possibility of bitcoin $25,000 area and ether $1,800 area would be prudent.

But once and if these levels are tested, we see crypto assets well supported for a resumption of upside momentum, irrespective of what’s going on in stocks, this on the longer-term value proposition of crypto as an asset class.

For now, the focus is all on the outcome of tomorrow’s Fed meeting. Investors will be looking for the Fed to show some signs that it won’t be as hawkish as the indications we’ve been getting in the leadup to the event.

But if the Fed is as hawkish as the market is worrying about, look out for more fallout in stocks and crypto as a consequence.