LMAX Digital volumes were up big across the board on Tuesday, thanks in large part to volatility inspired by the US inflation data. Total notional volume for Tuesday came in at $461 million, 141% above 30-day average volume.

Bitcoin volume printed $347 million on Tuesday, 207% above 30-day average volume. Ether volume came in at $62 million, 50% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $3,322 and average position size for ether at 1,681.

Volatility has been anemic in 2022, and after seeing a little pick-up in recent weeks, we’re right back down to yearly low levels. We’re looking at average daily ranges in bitcoin and ether of $473 and $56 respectively.

The soft US CPI print was well received by risk assets, with stocks running higher and the US Dollar selling off hard in the aftermath. And as things have been correlating in 2022, it was no surprise to see crypto assets pushing up as well.

Technically speaking, as highlighted in today’s analysis, while the runs higher in bitcoin and ether have been impressive, both markets have yet to transition back into official uptrends on their respective daily charts against the US Dollar.

As far as crypto specific stories go, there continues to be buzz around all headlines relating to SBF and his arrest. We also got to hear testimony from new FTX CEO John J. Ray in front of the House Committee.

It was refreshing to hear understanding from committee members that this was not about crypto and more about bad business practice from a centralized institution.

Moving on, market participants have been concerned about developments over at Binance, as worry builds around the exchange’s proof of reserves, which led to massive withdrawals and an eventual pause of USDCD withdrawals.

At the same time, the Binance CEO downplayed the withdrawal pause, chalking it up to technical reasons, and in the end, while net outflows were elevated, they weren’t alarming on a systemic level.

Looking ahead, the focus will shift to today’s Federal Reserve meeting. It will be interesting to see what kind of communication we get from the central bank and whether or not the communications leans more hawkish or more dovish.