LMAX Digital volumes have been softer this week on account of tight ranges and thinner summer trading conditions.

Total notional volume for Tuesday came in at $347 million, 14% below 30-day average volume.

Bitcoin volume printed $186 million on Tuesday, 18% below 30-day average volume. Ether volume came in at $109 million, 4% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $8,845 and average position size for ether at $3,496.

Market volatility has been trending higher since bottoming at the end of June and early July. We’re back to about halfway between yearly high and low levels.

Average daily ranges in bitcoin and ether are $3,096 and $183 respectively.

Tuesday’s cooler than expected US producer prices data was a welcome development for crypto assets.

The softer than expected inflation print increases odds for more Fed rate cuts than less in 2024, which in turn, has moved yield differentials out of the Buck’s favor.

Of course, there will be more attention placed on today’s US CPI print, with this number always getting more attention and more capable of shaking things up.

Risks assets along with crypto assets will be hoping for another soft reading to help keep the momentum going.

Meanwhile, the crypto market has been getting positive attention from the renewed inflows into both the bitcoin and ETH ETFs.

We’re also getting more confirmation of mainstream institutional adoption as Goldman Sachs reports $418 million in spot bitcoin ETF holdings as of June 30.

As far as seasonality trends go, we’re getting closer to October and November, two of the strongest performing months for crypto assets, especially during years of halving events.

Looking at the shorter-term time horizon, we continue to believe the biggest potential risk is any escalation on the geopolitical front relating to an Iran attack on Israel. Things have cooled off on this front and the market will be hoping it stays that way.