LMAX Digital volumes have been rather anemic this week. Total notional volume for Wednesday came in at just $203 million, 44% below 30-day average volume.

Bitcoin volume printed $117 million on Wednesday, 42% below 30-day average volume. Ether came in at $63 million, 44% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $6,128 and average position size for ether at 2,610.

Volatility has been absent from the market for much of 2022 and is still trending down at yearly low levels. We’re looking at average daily ranges in bitcoin and ether of $664 and $60 respectively.

We really haven’t seen all that much movement in cryptocurrencies over the past several weeks, which has resulted in exceptionally low volatility and volume.

Broadly speaking, whenever markets get to trading like this, it often warns of a surge in both volatility and volume on the horizon. But for now, we’re still waiting for that catalyst.

One such catalyst could come later today from the US CPI print. The market has been eyeing this release all week and will be looking to respond one way or another, if the number deviates from expectation.

Anything that comes in on the higher side, will likely add more downside pressure to risk assets, which could open more selling in crypto. Anything on the softer side, will likely invite risk on flow and renewed crypto demand.

Recent studies show selling pressure in crypto is likely exhausted at this point, but that more than 31% of coins held by longer-term holders are being held at a loss.

We still believe macro pressures could expose crypto to more downside in 2022, but we also believe we are getting closer to levels where we will see a disconnect between correlations with risk sentiment.