LMAX Digital volumes were thin once again on Wednesday on account of some tight, directionless trade.

Total notional volume for Wednesday came in at $247 million, 35% below 30-day average volume.

Bitcoin volume printed $149 million on Wednesday, 32% below 30-day average volume. Ether volume printed $47 million, 52% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $8,177 and average position size for ether at 2,887.

Volatility has been trending back towards yearly low levels in July after an impressive run up in June. We’re looking at average daily ranges in bitcoin and ether of $820 and $58 respectively.

No major updates from the fundamental front into Thursday. Most of what we’ve been seeing is a continued tight consolidation in the price of bitcoin, with the market most recently being supported into consolidation support.

As we’ve already highlighted, while the price of bitcoin holds above the consolidation low, our short-term outlook remains constructive with the expectation the consolidation will be broken to the topside for a bullish continuation.

Our biggest concern at the moment is that we have seen no correlation between bitcoin and stocks in recent days while stocks have pushed hard to extend to fresh yearly highs.

Indeed, bitcoin has perhaps been propped up somewhat on the price action. But at the same time, it certainly hasn’t moved higher with stocks.

We’re concerned this correlation will become more active in the event of a reversal in stocks, with bitcoin potentially at risk of falling sharply should global sentiment deteriorate.

If on the other hand stocks head south and bitcoin can hold up or even rally, this will send an encouraging message that investors are finally waking up the the true value proposition of bitcoin as a store of value asset.