LMAX Digital volume cooled off in Wednesday trade following a solid start to the week. Total notional volume for Wednesday came in at $630 million, 19% below 30-day average volume.

Bitcoin volume printed $329 million on Wednesday, 21% below 30-day average volume. Ether volume came in at $247 million, 15% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $10,201 and average position size for ether at 6,655.

Volatility has been trending lower in 2022. We’re now looking at average daily ranges in bitcoin and ether of $2,140 and $203 respectively.

Cryptocurrencies are under pressure into Thursday on the back of the latest escalation in geopolitical tension between Russia and the Ukraine. As we’ve highlighted many times, the correlation with risk off is still relevant right now and we expect will continue to be for a little while longer.

At the same time, we do stress just ‘a little while longer,’ as we expect this next big dip to be met with overwhelming support from medium and longer-term players who recognize the value proposition of cryptocurrencies, whether it be as a new monetary system, or as a compelling new technological innovation.

Because crypto is considered by many to be a maturing, emerging market class, it has been vulnerable to disruptions in global markets. But the reality is that the decentralized, deflationary, limited supply properties of these currencies, should make them highly attractive to investors, especially at times like these.

Technically speaking, we outlined the possibility for one more sizable pullback that would take bitcoin back down into the $25,000 area, and ether down towards $1,800. Keep an eye on the current 2022 lows in the respective currencies. If broken, it will strengthen the case for this outcome.