LMAX Digital volumes put in a healthy performance on Tuesday. Total notional volume for Tuesday came in at $969 million, 86% above 30-day average volume.

Bitcoin volume printed $504 million on Tuesday, 106% above 30-day average volume. Ether volume came in at $196 million, 100% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $10,424 and average position size for ether at $1,733.

Market volatility has cooled off considerably since peaking out earlier this month. We’re looking at average daily ranges in bitcoin and ether of $3,316 and $174 respectively.

The market has gotten off to a tough start in 2025. We believe there are two material factors contributing to the price action. The first comes down to what has already been priced in.

Indeed, there has been plenty of optimism around a crypto friendly US administration. At the same time, a lot of this optimism has already been reflected in the price action from November through January, leaving the market exposed to a sell the fact type reaction.

Investors are now looking for more follow-through on the administration’s policies, which should act as a catalyst for the next wave of demand.

The other drag comes from the world of traditional markets where risk appetite has cooled off in response to global trade tension and a more hawkish Fed outlook.

As far as this goes, we believe correlations between bitcoin and traditional risk assets can be misleading, with bitcoin easily capable of generating sizable demand as an attractive portfolio diversification asset given properties that align more with that of a store of value.

At the same time, should trade tensions die down, as we expect they will, and should the Fed once again bow to the will of the market and make some accommodative gestures, risk assets will get a nice prop, which should help to fuel additional demand for crypto assets.

Technically speaking, there is formidable support for bitcoin in the $70-$75k area, which should serve as an attractive higher low ahead of the next major upside extension and bullish continuation to a fresh record high beyond $110k.