Total notional volume at LMAX Digital cooled off in the previous week after an explosive start to the year. Total notional volume from last Monday through Friday came in at $2.5 billion, 69% lower than a week earlier.

Breaking it down per coin, bitcoin volume came in at $1.7 billion in the previous week, 71% lower than the week earlier. Ether volume came in at $448 million, 65% lower than the week earlier.

Total notional volume over the past 30 days comes in at $23.2 billion.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $15,420 and average position size for ether at $3,866.

Volatility has come off in recent days after trading to multi-month highs. We’re looking at average daily ranges in bitcoin and ether of $1,753 and $104 respectively.

We’re coming out of a rather uneventful week for crypto assets. The best way to describe the price action is a post SEC bitcoin spot ETF approval hangover. We saw a selling of the fact on the news and this was also accompanied by a pullback in overall volume.

When looking at performance in crypto over the past 30 days, it’s clear the attention has now shifted towards the eth spot ETF applications, which are looking to get approved later this year.

Over the past 30 days, ether has outperformed, including relative to traditional assets, with the crypto up over 7% over that time, as compared to bitcoin, down over 7%.

On the macro front, investors have continued to price in a series of rate cuts at the Fed in 2024, which has weighed on US Dollar yield differentials. Interestingly enough however, crypto assets haven’t benefited as much of late from broad Dollar selling.

Technically speaking, the focus over the coming sessions will be on the bitcoin $40k level. While above $40k, the outlook remains highly constructive, with a bounce expected for an eventual run to fresh multi-month highs beyond $50k.

However, should we see the market trade back and close below $40k on a daily basis, it will delay the constructive outlook and expose a deeper correction before the longer-term uptrend resumes.