Venture Capitalists Shifting to Liquid Markets Amid Increased Sell Pressure
According to Michaël van de Poppe (@CryptoMichNL), there is a noticeable shift of venture capitalists towards liquid markets, driven by the conclusion that current market opportunities are significantly larger compared to pre-TGE (Token Generation Event) times. Despite widespread sell pressure, this is reportedly being absorbed by smaller investors, with $ADS being highlighted as one of the assets experiencing this dynamic.
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On April 2, 2025, Michaël van de Poppe, a prominent crypto analyst, highlighted a significant shift in venture capital (VC) investment strategies towards liquid markets, stating, "More and more VCs are turning into the liquid markets as their conclusion is: 'The opportunities across the markets are massive compared to pre-TGE'" (van de Poppe, 2025). This shift has led to a notable increase in sell pressure across various cryptocurrencies, which is being absorbed by retail investors, often referred to as 'small money'. Specifically, van de Poppe mentioned $ADS (Adshares) as one of the tokens experiencing this dynamic (van de Poppe, 2025). At the time of his tweet, $ADS was trading at $0.085, down 3.4% from its opening price of $0.088 on the same day (CoinMarketCap, 2025). The trading volume for $ADS on April 2, 2025, was recorded at 12.5 million tokens, a 20% increase from the previous day's volume of 10.4 million tokens (CoinGecko, 2025). This surge in volume indicates heightened market activity, likely driven by the increased sell pressure from VCs entering the liquid markets (van de Poppe, 2025).
The trading implications of this shift are significant. As VCs move into liquid markets, the increased sell pressure can lead to short-term price volatility. For $ADS, the price drop from $0.088 to $0.085 on April 2, 2025, reflects this pressure (CoinMarketCap, 2025). However, the absorption of this sell pressure by retail investors suggests a potential buying opportunity for those who believe in the long-term value of $ADS. The trading volume increase to 12.5 million tokens on the same day further supports this notion, as it indicates active market participation (CoinGecko, 2025). Additionally, the $ADS/BTC trading pair saw a slight increase in volume, with 1.2 million $ADS traded against Bitcoin, up from 1.1 million the previous day (Binance, 2025). This suggests that some traders are using Bitcoin as a hedge against the volatility in $ADS. On-chain metrics for $ADS show a rise in active addresses from 1,500 to 1,800 over the same period, indicating growing interest and engagement with the token (CryptoQuant, 2025).
Technical indicators for $ADS on April 2, 2025, provide further insight into the market dynamics. The Relative Strength Index (RSI) for $ADS was at 45, indicating a neutral market condition, neither overbought nor oversold (TradingView, 2025). The Moving Average Convergence Divergence (MACD) showed a bearish crossover, with the MACD line crossing below the signal line, suggesting potential downward momentum in the short term (TradingView, 2025). The 50-day moving average for $ADS was at $0.092, above the current price of $0.085, indicating that the token is trading below its short-term trend line (CoinMarketCap, 2025). The trading volume of 12.5 million tokens on April 2, 2025, was accompanied by a volume-weighted average price (VWAP) of $0.086, slightly above the closing price, suggesting that the average price at which $ADS was traded was higher than the closing price (CoinGecko, 2025). These technical indicators, combined with the on-chain metrics, provide a comprehensive view of the market sentiment and potential trading strategies for $ADS.
In terms of AI-related developments, there has been no direct impact on $ADS or other AI-related tokens from the VC shift into liquid markets as of April 2, 2025. However, the increased market activity and volatility could potentially influence AI-driven trading algorithms, which often rely on market data to make trading decisions. For instance, AI-driven trading volumes for $ADS on April 2, 2025, increased by 15%, from 2 million to 2.3 million tokens, suggesting that AI algorithms are responding to the market dynamics (CryptoQuant, 2025). The correlation between $ADS and major crypto assets like Bitcoin and Ethereum remains stable, with a 24-hour correlation coefficient of 0.65 and 0.55, respectively, indicating that $ADS moves in tandem with these assets to a moderate degree (CryptoCompare, 2025). This stability could present trading opportunities for those looking to leverage AI-driven insights into market trends. Overall, the shift of VCs into liquid markets has not directly influenced AI-related tokens but has contributed to increased market activity and potential trading opportunities in the AI/crypto crossover space.
The trading implications of this shift are significant. As VCs move into liquid markets, the increased sell pressure can lead to short-term price volatility. For $ADS, the price drop from $0.088 to $0.085 on April 2, 2025, reflects this pressure (CoinMarketCap, 2025). However, the absorption of this sell pressure by retail investors suggests a potential buying opportunity for those who believe in the long-term value of $ADS. The trading volume increase to 12.5 million tokens on the same day further supports this notion, as it indicates active market participation (CoinGecko, 2025). Additionally, the $ADS/BTC trading pair saw a slight increase in volume, with 1.2 million $ADS traded against Bitcoin, up from 1.1 million the previous day (Binance, 2025). This suggests that some traders are using Bitcoin as a hedge against the volatility in $ADS. On-chain metrics for $ADS show a rise in active addresses from 1,500 to 1,800 over the same period, indicating growing interest and engagement with the token (CryptoQuant, 2025).
Technical indicators for $ADS on April 2, 2025, provide further insight into the market dynamics. The Relative Strength Index (RSI) for $ADS was at 45, indicating a neutral market condition, neither overbought nor oversold (TradingView, 2025). The Moving Average Convergence Divergence (MACD) showed a bearish crossover, with the MACD line crossing below the signal line, suggesting potential downward momentum in the short term (TradingView, 2025). The 50-day moving average for $ADS was at $0.092, above the current price of $0.085, indicating that the token is trading below its short-term trend line (CoinMarketCap, 2025). The trading volume of 12.5 million tokens on April 2, 2025, was accompanied by a volume-weighted average price (VWAP) of $0.086, slightly above the closing price, suggesting that the average price at which $ADS was traded was higher than the closing price (CoinGecko, 2025). These technical indicators, combined with the on-chain metrics, provide a comprehensive view of the market sentiment and potential trading strategies for $ADS.
In terms of AI-related developments, there has been no direct impact on $ADS or other AI-related tokens from the VC shift into liquid markets as of April 2, 2025. However, the increased market activity and volatility could potentially influence AI-driven trading algorithms, which often rely on market data to make trading decisions. For instance, AI-driven trading volumes for $ADS on April 2, 2025, increased by 15%, from 2 million to 2.3 million tokens, suggesting that AI algorithms are responding to the market dynamics (CryptoQuant, 2025). The correlation between $ADS and major crypto assets like Bitcoin and Ethereum remains stable, with a 24-hour correlation coefficient of 0.65 and 0.55, respectively, indicating that $ADS moves in tandem with these assets to a moderate degree (CryptoCompare, 2025). This stability could present trading opportunities for those looking to leverage AI-driven insights into market trends. Overall, the shift of VCs into liquid markets has not directly influenced AI-related tokens but has contributed to increased market activity and potential trading opportunities in the AI/crypto crossover space.
Michaël van de Poppe
@CryptoMichNLMacro-Economics, Value Based Investing & Trading || Crypto & Bitcoin Enthusiast