US Investors Prop Up Bitcoin, Ethereum Amid Geopolitical Uncertainty
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Bitcoin and Ethereum have shown remarkable resilience in the face of rising geopolitical tensions between Israel and Iran, defying typical bearish market reactions to such instability. A key factor contributing to this unexpected strength is the sustained buying activity from US institutional investors, as evidenced by the Coinbase Premium Index. This index, which tracks the price difference between Coinbase (USD) and Binance (USDT) for Bitcoin and Ethereum, has remained positive for seven weeks, indicating robust demand from US-based investors willing to pay a premium. On-chain analyst Burak Kesmeci highlights the significant role of US institutional investors and ETF investors (excluding Fidelity) in maintaining the positive Coinbase Premium. These investors have been actively purchasing through Coinbase for several weeks, bolstering prices despite the global uncertainty. This sustained buying pressure is viewed as a counterbalance to the typically negative impact of geopolitical instability on risk assets like cryptocurrencies. While Bitcoin is trading near $107,100 with minimal daily change, and Ethereum is around $2,420 with a slight uptick, the positive Coinbase Premium suggests that US investor confidence is playing a crucial role in supporting the market's stability. This resilience contrasts with the market's performance in the first quarter of 2025, showing a significant shift towards bullish momentum in the second quarter. Bitcoin recently hit a new all-time high above $111,000, and Ethereum briefly reclaimed the $2,000 mark. However, Ethereum has since consolidated within a range. The continued positive Coinbase Premium suggests that despite potential market volatility, the US institutional investor activity could be a significant factor in preventing a sharp decline in Bitcoin and Ethereum prices.
(Source: https://www.newsbtc.com/news/bitcoin-ethereum-coinbase-premium-positive-seven-weeks/)
