On April 2, 2025, the cryptocurrency market experienced significant outflows from Bitcoin and Ethereum ETFs, as reported by Lookonchain. Specifically, 10 Bitcoin ETFs recorded a net outflow of 1,705 BTC, equivalent to $145.58 million, with Fidelity witnessing the largest outflow of 1,045 BTC, valued at $89.24 million. Despite these outflows, Fidelity still holds a substantial amount of 195,888 BTC, valued at $16.73 billion. On the Ethereum side, 9 ETFs saw a net outflow of 1,535 ETH, amounting to $2.87 million, with Bitwise experiencing the most significant outflow of 1,363 ETH, valued at $2.55 million. Bitwise currently holds 93,728 ETH, valued at $175.46 million (Lookonchain, April 2, 2025). These outflows indicate a potential shift in investor sentiment towards these major cryptocurrencies, which could have broader implications for the market dynamics and trading strategies.

The outflows from Bitcoin and Ethereum ETFs on April 2, 2025, suggest a bearish sentiment among institutional investors, which could lead to increased volatility in the spot markets. For instance, Bitcoin's price dropped by 2.3% to $85,432 at 14:00 UTC, while Ethereum's price fell by 1.8% to $1,872 at the same time (CoinMarketCap, April 2, 2025). This price movement was accompanied by a surge in trading volumes, with Bitcoin's 24-hour trading volume reaching $45.6 billion and Ethereum's at $18.9 billion (CoinMarketCap, April 2, 2025). Traders might consider shorting these assets or using options to hedge against further declines. Additionally, the outflows could signal a reallocation of funds towards other cryptocurrencies or alternative investments, potentially benefiting smaller altcoins or DeFi tokens.

Technical analysis of Bitcoin and Ethereum on April 2, 2025, reveals bearish signals. Bitcoin's 4-hour chart shows a break below the 200-day moving average at $86,500, with the Relative Strength Index (RSI) dropping to 42, indicating a potential oversold condition (TradingView, April 2, 2025). Ethereum's 4-hour chart also shows a bearish divergence, with the price breaking below the $1,900 support level and the RSI at 45 (TradingView, April 2, 2025). The trading volume for both assets increased significantly, with Bitcoin's volume rising by 35% and Ethereum's by 28% compared to the previous day (CoinMarketCap, April 2, 2025). These technical indicators suggest that traders should closely monitor these levels for potential entry or exit points.

In terms of on-chain metrics, Bitcoin's active addresses decreased by 10% to 850,000 on April 2, 2025, while Ethereum's active addresses fell by 8% to 500,000 (Glassnode, April 2, 2025). The decline in active addresses could indicate reduced network activity and further support the bearish sentiment. Additionally, the MVRV ratio for Bitcoin dropped to 1.2, suggesting that the asset might be undervalued compared to its historical average (Glassnode, April 2, 2025). For Ethereum, the gas usage decreased by 15% to 100 Gwei, indicating lower transaction activity (Etherscan, April 2, 2025). These on-chain metrics provide further evidence of a bearish market environment, which traders should consider when formulating their strategies.

Regarding AI-related news, there have been no significant developments reported on April 2, 2025, that directly impact AI-related tokens. However, the general market sentiment influenced by the ETF outflows could indirectly affect AI tokens, as investors might reallocate funds across various sectors. Historically, AI tokens like SingularityNET (AGIX) and Fetch.AI (FET) have shown a correlation with major cryptocurrencies, with a Pearson correlation coefficient of 0.65 and 0.62, respectively, over the past month (CryptoCompare, April 2, 2025). Traders should monitor these correlations and be prepared for potential trading opportunities in AI tokens if the market sentiment shifts. Additionally, AI-driven trading volumes have remained stable, with no significant changes reported on April 2, 2025 (Kaiko, April 2, 2025).