LMAX Digital volumes have been improving as the week has moved forward. Total notional volume for Wednesday came in at $385 million, just 4% below 30-day average volume.

Bitcoin volume printed $232 million on Wednesday, 3% below 30-day average volume. Ether volume printed $102 million, 7% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,505 and average position size for ether at 2,858.

Volatility has been in major correction mode after peaking out at a yearly high in March. We’re looking at average daily ranges in bitcoin and ether of $846 and $59 respectively.

Though we are coming off a session of downside pressure in the crypto market, the picture remains the same.

We continue to highlight our technical analysis, and believe a break on either end of defined support or resistance in the price of bitcoin will be needed for true clarity with respect to the next meaningful move.

On the one side, we have seen selling from broad based US Dollar demand on yield differentials pushing back in the Buck’s favor on account of a Fed policy trajectory that still leans hawkish.

On the other side, the crypto market has found a healthy bout of fresh support in 2023 around the narrative of crypto being an extremely attractive alternative in a world where the traditional banks are vulnerable and exposed.

As far as the US debt ceiling drama goes, we don’t think this is having much impact on crypto or broader markets for that matter. Ultimately, we’ve seen this before and a deal should get done into the final hours.

Looking ahead, we believe the next big catalyst for a move in the right direction will need to come from a positive update on the regulatory front.

Absence of regulatory clarity has been a major thorn at the side of crypto in 2023 and the market is desperate for this to be worked out.