Total notional volume at LMAX Digital was up overall in the previous week. Total notional volume from last Monday through Friday came in at $2.17 billion, 7.4% higher than the week earlier.

Breaking it down per coin, Bitcoin volume came in at $1.4 billion in the previous week, 25% higher than the week earlier. Ether volume however struggled, coming in at just $434 million, 20% lower than the week earlier.

Total notional volume over the past 30 days comes in at $12.5 billion.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $6,470 and average position size for ether at $3,083.

Volatility has turned up nicely in recent sessions and is trading back towards yearly high levels. We’re looking at average daily ranges in bitcoin and ether of $898 and $72 respectively.

It’s been a wild ride for crypto over the past few days. Bitcoin and ether had taken big hits into the latter portion of last week on the back of the news around the implosions within the US banking sector.

Threats that would compromise off-ramp solutions became very real, and worry around the fate of the USDC stable coin held on deposit at one of these banks only added to the turmoil and disruption.

But over the weekend, many fears were put to rest after actions were taken to soften the blow, with US officials stepping in to backstop all deposits at SVB and Signature.

In a joint statement issued by the Treasury Department, the Fed and the Federal Deposit Insurance Corporation, these fears were addressed on the communication that these bodies were “taking decisive actions to protect the U.S. economy by strengthening public confidence” in the banking system.

We have since seen a sharp rebound in crypto, and we have since seen a concurrent recovery in broader risk assets, as all of this news has forced a dovish repricing of Fed expectations.

Bets for next week’s Fed decision have now dropped back down to a 25 basis point rate hike, after odds for a 50 basis point rate hike were up around 50% earlier last week.

The market believes the latest turmoil in the banking sector will force the Fed to be less aggressive, thereby inviting a more investor friendly market environment.

Technically speaking, while below $25,200, bitcoin is stuck in a sideways consolidation following an intense drop in 2022. This still leaves the door open to bouts of weakness until we can establish back above $25,200.