US Investors Prop Up Bitcoin, Ethereum Amidst Geopolitical Uncertainty
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The cryptocurrency market, particularly Bitcoin and Ethereum, has shown remarkable resilience in the second quarter of 2025, defying expectations after a weaker first quarter. Bitcoin surged to a new all-time high above $111,000, while Ethereum reclaimed the $2,000 mark in early May, although it has since consolidated. Despite rising tensions between Israel and Iran, these cryptocurrencies have maintained their value, a phenomenon attributed to the sustained activity of US investors.
On-chain analyst Burak Kesmeci highlights the Coinbase Premium Index as a key indicator. This index tracks the price difference between Coinbase (USD pair) and Binance (USDT pair), reflecting the sentiment of US institutional investors versus global traders. A positive premium indicates higher demand from US investors willing to pay more. Kesmeci notes a 47-day positive streak (excluding a brief dip on May 29th, 2024) in the Coinbase Premium for Bitcoin and Ethereum, starting from May 9th, 2024. This suggests robust buying pressure from US institutional investors, including ETF investors (except Fidelity), who are actively purchasing through Coinbase.
Kesmeci posits that this strong US institutional buying is the primary reason Bitcoin and Ethereum have withstood the bearish pressure typically associated with geopolitical instability. Risk assets usually decline during times of war or global crises, but the sustained US investment has seemingly offset this effect. At the time of writing, Bitcoin is trading around $107,100, and Ethereum is at approximately $2,420, showing minimal price fluctuation in the preceding 24 hours. This situation underscores the significant influence of US investors on the stability of Bitcoin and Ethereum prices in the face of global uncertainty.
(Source: https://www.newsbtc.com/news/bitcoin-ethereum-coinbase-premium-positive-seven-weeks/)
