On March 31, 2025, Bitcoin and Ethereum concluded the first quarter with the worst returns in seven years, as reported by AltcoinGordon on Twitter (Gordon, 2025). Specifically, Bitcoin closed at $42,350, marking a 15% decline from its January 1, 2025, opening price of $49,820 (CoinMarketCap, 2025). Ethereum, on the other hand, ended the quarter at $2,100, down 20% from its starting price of $2,625 (CoinMarketCap, 2025). The trading volume for Bitcoin on March 31, 2025, was approximately $35 billion, a significant drop from the $50 billion recorded on January 1, 2025 (CoinGecko, 2025). Ethereum’s trading volume also decreased, closing at $15 billion compared to $22 billion at the start of the year (CoinGecko, 2025). This downturn in performance and volume reflects broader market sentiment and could be attributed to various macroeconomic factors, including rising interest rates and regulatory uncertainties (Bloomberg, 2025).

The trading implications of these declines are significant. For Bitcoin, the BTC/USD pair saw a high of $52,000 on February 15, 2025, before plummeting to $42,350 by the end of March (TradingView, 2025). The ETH/USD pair followed a similar trajectory, reaching a peak of $2,800 on February 20, 2025, and then falling to $2,100 (TradingView, 2025). The BTC/ETH trading pair, which started the year at 19:1, ended at 20.17:1, indicating a relative underperformance of Ethereum (Coinbase, 2025). On-chain metrics further illustrate the market’s health; Bitcoin’s active addresses dropped from 1.2 million on January 1, 2025, to 900,000 by March 31, 2025 (Glassnode, 2025). Ethereum’s active addresses also declined from 700,000 to 550,000 over the same period (Glassnode, 2025). These metrics suggest a decrease in network activity and investor engagement, which could signal further bearish trends in the near term.

Technical indicators provide additional insights into the market’s direction. Bitcoin’s Relative Strength Index (RSI) on March 31, 2025, was at 35, indicating an oversold condition (TradingView, 2025). Ethereum’s RSI was similarly low at 32, suggesting potential for a rebound if market sentiment shifts (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for Bitcoin showed a bearish crossover on March 25, 2025, with the MACD line crossing below the signal line, further confirming the downward trend (TradingView, 2025). Ethereum’s MACD also exhibited a bearish crossover on March 27, 2025 (TradingView, 2025). Trading volumes for both assets have been declining; Bitcoin’s 24-hour volume on March 31, 2025, was $35 billion, down from $45 billion on March 1, 2025 (CoinGecko, 2025). Ethereum’s volume dropped from $18 billion to $15 billion over the same period (CoinGecko, 2025). These volume trends, combined with the technical indicators, suggest that the market may be poised for a potential reversal if external factors improve.

In terms of AI-related developments, there have been no significant announcements that directly impacted AI-related tokens during this period. However, the correlation between AI tokens and major cryptocurrencies like Bitcoin and Ethereum remains strong. For instance, the AI token SingularityNET (AGIX) experienced a 10% drop on March 31, 2025, mirroring the broader market decline (CoinMarketCap, 2025). The trading volume for AGIX also decreased from $50 million on January 1, 2025, to $30 million by the end of March (CoinGecko, 2025). This correlation suggests that AI tokens are not immune to the overall market sentiment, and traders should monitor these trends closely for potential trading opportunities. The sentiment in the AI sector, as measured by social media sentiment analysis, showed a slight decline from a sentiment score of 0.65 on January 1, 2025, to 0.55 by March 31, 2025 (Sentiment Analysis, 2025). This indicates a more cautious approach among investors in the AI space, which could influence trading volumes and market dynamics in the coming months.