LMAX Digital volume was exceptionally impressive on Tuesday, really showing signs of life as the market turned up. Total notional volume for Tuesday came in at $1.3 billion, 53% above 30-day average volume.

Bitcoin volume printed $832 million on Tuesday, 81% above 30-day average volume. Ether volume came in at $311 million, 5% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $11,020 and average position size for ether at 6,666.

Volatility has been trending lower in 2022. We’re now looking at average daily ranges in bitcoin and ether of $2,441 and $220 respectively.

Price action this week has been impressive, with a number of things happening that are all encouraging. Clearly the upticks in both bitcoin and ether are the most obvious signs, but these upticks in price have also been accompanied by upticks in volume and average position size. This suggests we should expect more bullish momentum ahead.

We also like the bitcoin outperformance during this time, as we expect bitcoin to ultimately lead the way forward. And after seeing a period of bearish price action since these markets topped out at record highs in November, it’s encouraging to see bitcoin as the one that is trying to push ahead – telling the market that if things are changing for the better, it’s bitcoin that will make that decision.

Moves in crypto have been even more encouraging of late when considering they have been happening independent of stocks. We’ve continued to see downside pressure in stocks in recent days, all while crypto assets have been outperforming.

This point is perhaps even more significant right now given the Russia-Ukraine conflict where locals are desperately seeking alternatives to the traditional system, where things have become more hostile and access to funds increasingly difficult. The Ukrainian government has received over $24.6 million in crypto donations from over 26,000 donors, according to Blockchain analytics firm, Elliptic.

We also believe medium and longer-term market participants are finally stepping in at current levels, looking to take advantage of the dip on the compelling value proposition, which should be more tied to bitcoin’s draw as a store of value and ether’s draw as an exciting new technology play.

We’re also seeing signs of new market participants stepping in to take on exposure in 2022. These market participants are rich in cash and include large family offices, institutional names, and some of the major banks.