Bitcoin Ethereum Surge 47% Despite Geopolitical Tensions

The cryptocurrency market, particularly Bitcoin and Ethereum, has shown strong performance in the second quarter of 2025, contrasting sharply with the first quarter's performance. Bitcoin reached a new all-time high above $111,000, while Ethereum reclaimed the $2,000 mark in early May, although it has since consolidated within a range. Despite escalating tensions between Israel and Iran, both cryptocurrencies have managed to maintain their value.

On-chain analyst Burak Kesmeci highlighted that United States investors have been actively participating in the market over the past few weeks. This activity has helped Bitcoin and Ethereum prices withstand bearish pressure. The observation is based on the Coinbase Premium Index, which measures the difference between crypto prices on the US-based Coinbase exchange and the global Binance exchange. A positive value in this index indicates increasing demand from US investors, who are willing to pay more than global investors for cryptocurrencies. Conversely, a negative value suggests that US investors are buying less compared to global traders.

According to Kesmeci, the Bitcoin and Ethereum Coinbase Premium Index has remained positive since May 9, 2024, with a 47-day streak. This indicates high buying activity from US institutional investors despite geopolitical tensions. Kesmeci noted that institutional investors and Bitcoin & Ethereum ETF investors (excluding Fidelity) have been heavily purchasing through Coinbase for weeks, contributing to the strong positive momentum in Coinbase Premiums. This activity has helped prevent sharp drops in Bitcoin and Ethereum prices, even amidst global crises.

As of the latest update, the price of Bitcoin stands at around $107,100, showing no significant movement in the past 24 hours. Ethereum is valued at approximately $2,420, with a slight 0.6% increase in the past day. The resilience of these cryptocurrencies can be attributed to the sustained buying activity from US investors, who have been instrumental in maintaining market stability despite external uncertainties.