Total notional volume nudged up just a bit from the previous day, with Tuesday volumes coming in at $702.1 million, from $701.5 million on Monday. Bitcoin volume was however off from the previous day, coming in at $381 million from $398 million on Monday. Ether volume did however pick up quite a bit from Monday, at $197 million on Tuesday from $180 million.

Total notional volume at LMAX Digital over the past 30 days comes in at $29.6 billion. Average trading size for Bitcoin over the past 30 days comes in at $8,672. Average trading size for Ether over the past 30 days comes in at 3,616.

The average daily trading range for BTCUSD is $2,060. The average daily trading range for ETHUSD is $175.

Some of the weakness we’re seeing in crypto assets is coming US economic data, with inflation metrics front and centre. Tuesday’s much hotter than expected US inflation reads cast further doubt as to whether or not inflation is truly transitory.

This is significant because any indication that inflation is here to stay is something that will likely force the Fed into a tighter policy track and weigh on investor sentiment by extension. And with crypto still viewed by many as an emerging market, we could see additional downside pressure if US equities falter.

Having said that, we also believe most of the downside risk has been priced in at this stage. While we acknowledge risk for one more decent decline in 2021, we also see Bitcoin and Ether very well supported into this next dip on their longer-term value propositions.

Technically speaking, nothing has really changed at this point. Both Bitcoin and Ether are consolidating within tight ranges and holding above recent bases. It would take a break back below the June low in the price of Bitcoin ($18,800) to suggest we are in fact at risk of another decline.