Bitcoin and Ethereum were the stars of the second quarter of 2025, with breathtaking growth. What a contrast this was to their performance in the opening quarter. Even with the increasing geopolitical tensions focused mainly between Israel and Iran, these two cryptocurrencies have proven to be incredibly resilient. This performance has been driven by sustained buying activity from United States based institutional investors. Their engagement has proven critical to return some sense of order to prices stabilization.
In fact, this was the period when bitcoin truly exploded into the popular consciousness, setting an all-time high of over $111,000. Ethereum experienced a comeback too, retaking the $2,000 level by early May. The stablecoin is now valued at about $2,420, which is a modest 0.6% increase in the last 24 hours.
The purchase patterns of US investors are one important piece of the puzzle to understanding these shifting market dynamics. The Coinbase Premium Index, which measures the price difference between the US-based Coinbase exchange and the global Binance exchange, provides insights into this trend. A value greater than zero on this index indicates a healthy demand for cryptocurrencies from US investors. This makes them willing to pay a premium for them compared to investors from other countries. In contrast, a negative number indicates less US-based purchasing activity compared to non-US-based traders.
On-chain analyst Burak Kesmeci expressed excitement at the increase in market activity. He noted that United States investors have been heavily involved in the last several weeks. Their ongoing buying tenacity has been key in stopping stark declines in Bitcoin and Ethereum prices. This overwhelming support has undeniably helped shore up their competitive advantages, despite ongoing geopolitical turmoil. This trend is a testament to the increased confidence and investment appetite of US institutional investors in the cryptocurrency space.
