LMAX Digital volumes continue to improve after a slow start to the week. Tuesday volumes were 20% above Monday volumes and Wednesday volumes were 20% above Tuesday’s volumes.

This puts total notional volume back on pace with 30-day average volume. Total notional volume for Wednesday came in at $649 million, just 1% below 30-day average volume.

Bitcoin volume printed $474 million on Wednesday, jumping 15% above 30-day average volume. Ether volume however continues to weigh things down, after coming in at just $97 million on Wednesday, 40% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $7,997 and average position size for ether at 3,546.

There had been some signs of a pickup in volatility in May, though things have trended back down to yearly low levels in recent weeks. We’re now looking at average daily ranges in bitcoin and ether of $1,529 and $121 respectively.

Cryptocurrencies continue to hold up into dips, though we’re not convinced by any stretch that this should be taken as anything more than bearish consolidation ahead of the next big decline. One of the less reassuring signs out there right now is the exceptionally low volume in ether.

There has been much stronger activity in bitcoin, with bitcoin volume shooting back up throughout the week, all while ether volume continues to stumble. The activity is reflective of a market that is less inclined to be wanting to take risk, all suggestive of the possibility that we see more fallout in the space before that next big recovery.

Last month’s Terra meltdown and a massive reduction of activity in the defi space could also be adding to the reduction in appetite for ether. At this point, ether is trading just above critical support at $1,700. Sell-stops are reported below the level and if it goes, this will open the next major downside extension towards $1,400.

Of course, macro themes continue to be a major driver of price action. Tomorrow’s US inflation print will therefore be critical to watch. Anything that comes in above expectation will likely add more downside pressure on crypto, as it translates to the need for the Fed to continue with tighter, less investor friendly monetary policy.

On a positive note, there continues to be interest from the institutional side in building out products. Citadel and Virtu are building a crypto-trading platform with Fidelity and Charles Schwab.