LMAX Digital volumes got off to a good start this week. Total notional volume for Monday came in at 426 million, 45% above 30-day average volume.

Bitcoin volume printed $258 million on Monday, 57% above 30-day average volume. Ether volume came in at $136 million, 42% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $5,709 and average position size for ether at 2,508.

Volatility is still struggling to show signs of picking back up. We’re looking at average daily ranges in bitcoin and ether of $558 and $53 respectively.

Crypto has been correlating less with risk assets as of late, though we wouldn’t say that correlation has been completely abandoned. There is still plenty that needs to get worked out in the global economy, and still plenty of downside risk in 2022 that could weigh more on crypto assets as stocks go through another downturn.

The latest Bank of America fund manager survey backs this up, showing investors pulling out of risk assets in ‘full capitulation’ mode, boosting cash levels to the highest since April of 2001.

On a positive note, it seems the recent regulatory crackdown in the US has been well received by market participants that would otherwise be unwilling to invest in crypto as an asset class. Some 60% of participants polled in a Bloomberg survey said they were more likely to invest following greater enforcement action.

We think the big question right now for financial markets on the whole, is whether or not stocks have bottomed in 2022. We have a hard time believing this to be the case, with no official signs of a Fed pivot and inflation still not under control. And so, for the time being, it does feel like there’s risk for another drop in stocks, which could very well weigh on crypto.