Total notional volume at LMAX Digital was up big in the previous week from a week earlier. Total notional volume from last Monday through Friday came in at $2.8 billion, 62% higher than the week earlier.

Breaking it down per coin, Bitcoin volume came in at $1.5 billion in the previous week, up 100% from a week earlier. Ether volume came in at $106 million, 45% higher than the week earlier.

Total notional volume over the past 30 days comes in at $10.9 billion.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $5,240 and average position size for ether at $3,033.

Volatility has turned up in recent weeks and is well off multi-month lows. We’re looking at average daily ranges in bitcoin and ether of $874 and $72 respectively.

All of the worry in the early portion of last week around regulatory crackdown in the US has fallen off, with the market concluding this was more a case of bark than bite.

The feeling here is that the regulatory crackdown has been directed at centralized institutions, which ultimately shouldn’t compromise the outlook for a decentralized asset class.

There had also been some concerns around cumbersome custodial regulations for institutions, though upon further glance, the market concluded this was more friendly than not, which also helped to support crypto.

At the same time, we’ve been seeing a notable breakdown in correlations with US equities. Last week was a week in which stocks were largely under pressure on account of additional repricing of Fed expectations towards higher rates and less investor friendly monetary policy.

But while all of that was happening, crypto was rallying impressively. We believe the additional news of large traditional institutional players establishing or adding to exposure of digital assets also played a major role in the crypto outperformance.

Technically speaking, we aren’t out of the woods. Using bitcoin as a proxy, we’re still not through critical resistance in the form of the August 2022 high, which would signal the formation of a longer-term bottom.

This leaves the door open for renewed downside pressure should we stall out up at current levels and roll back over. If however the market can establish back above $25,220, the outlook could quickly become a lot more constructive.