LMAX Digital volumes were looking up for the second consecutive day on Wednesday. Total notional volume for Wednesday came in at $405 million, 108% above 30-day average volume.

Bitcoin volume printed $312 million on Wednesday, 168% above 30-day average volume. Ether came in at $43 million, 6% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $3,465 and average position size for ether at 1,684.

Volatility has been anemic in 2022, and after seeing a little pick-up in recent weeks, we’re right back down to yearly low levels. We’re looking at average daily ranges in bitcoin and ether of $501 and $57 respectively.

Crypto assets are holding up well even in the face of selling in US equities in the aftermath of the Fed decision. The Fed delivered a letdown for many doves, but on the whole, this didn’t do much at all to eat into this week’s gains in bitcoin and ether.

We’ve also seen an impressive pickup in crypto volume this week, with Tuesday and Wednesday volume levels trading well back above 30-day average volume.

There has been a lot of talk of institutional interest into the recent dips, with many big names stepping in and either increasing exposure or establishing exposure in anticipation of what is expected to be the next big run to the topside.

Nevertheless, we still anticipate additional turbulence for crypto assets in the first half of 2023 as the market contends with more potential disruption from higher interest rates, and more fallout from the FTX implosion.

Technically speaking, bitcoin has moved up into neutral territory on the daily chart, but has yet to turn bullish. We will need to see a break back above $18,500 to officially transition the market into uptrend mode.