LMAX Digital volumes have been impressive to start the week. Total notional volume for Monday came in at $896 million, 117% above 30-day average volume.

Bitcoin volume printed $546 million on Monday, 142% above 30-day average volume. Ether volume came in at $287 million, 111% above 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $12,302 and average position size for ether at $3,730.

Volatility metrics have been healthy, tracking back towards peak levels from January, also accompanied by strong price appreciations. We’re looking at average daily ranges in bitcoin and ether of $1,710 and $113 respectively.

The ability for bitcoin and ether to hold up so well into dips has been one of the more bullish indicators of late. Bitcoin was showing no signs of wanting to retreat after the latest push through $50k, sending a clear message to the market that the next big push would be on the horizon.

Bitcoin is now up well over 30% YTD, while ether has been even more impressive, up over 40% YTD. Bitcoin is trading at its highest level against the US Dollar since November 2021. Ether has rocketed to its highest level since April 2022.

This sets the stage for that next big push in the price of bitcoin towards a retest of the record high from November 2021 at $69k.

As far as market drivers go, it’s clear the warm reception to the spot bitcoin ETFs has been a major catalyst for price appreciation. This isn’t without good reason, as the bitcoin ETFs have opened the door for massive inflows in a seamless way.

We also believe there is added demand coming from all of the anticipation into the bitcoin halving event (due in April), along with expectations that the approval of the bitcoin ETFs has opened up a clear path for ether spot ETF approvals.

And yet another factor playing into demand that should not be discounted is overall global sentiment and record high US equities.

Indeed, we have talked about crypto assets being less correlated to global sentiment. At the same time, the ongoing push in stocks and broad selling of the US Dollar have definitely not been a thorn at crypto’s side.

MicroStrategy was back in the headlines after it was revealed that the company had acquired an additional 3,000 bitcoin, bringing its total bitcoin exposure to 193,000.

This is sending a strong message to the corporate world. And we suspect it will only add to the probability that bitcoin inflows continue to build throughout 2024.