Total notional volume at LMAX Digital was up in the previous week. Total notional volume from Monday through Friday came in at $3.99 billion, 15% higher than the week earlier.

Breaking it down per coin, Bitcoin volume came in at $2.5 billion in the previous week, up 20% from a week earlier. Ether volume came in at $1.1 billion, up 6% from the week earlier.

Total notional volume over the past 30 days comes in at $17.6 billion.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $12,713 and average position size for ether at $5,761.

Volatility has cooled off in 2022 after topping out in December. We’re now looking at average daily ranges in bitcoin and ether of $1,676 and $145 respectively.

We continue to see downside pressure on crypto resulting from this latest shakeup in risk assets. Last week’s Fed Minutes only reinforced the more hawkish Fed outlook, which also happens to be less investor friendly. And as we’ve been saying, for the moment, with bitcoin still trading like a risk asset, it is exposed to these setbacks.

We suspect that all of this could still translate to more weakness in crypto markets over the coming weeks. At the same time, there is enough medium and longer-term interest that is less focused on correlations with risk and more focused on the longer-term value proposition of the asset class that we believe we are getting closer to the correlation with risk breaking down.

In our view, we think any additional downside should be limited to the $25,000 area for bitcoin and to the $1,800 area for ether. And we also believe that should we see such an intense short-term fallout, it will indeed be a result of a more intensified sell-off in stocks, rather than from any negative crypto fundamentals.

On a positive note, there has been increased confidence in Ethereum on the back of ramped up confidence in the prospects for the transition to a fully proof of stake network. This has been reflected in a rapid uptick of ether staked to the beacon chain. Fees have started trending back to the topside as well, which is clearly supportive of the fundamental outlook.