After a long and bitter winter, Bitcoin returned to the market with vengeance in the second quarter of 2025, smashing records and silencing doubters. Gone were the days of cautious optimism, for the king of crypto did not just recover; it soared past its previous highs and hit a brand-new record-high at $111,000-plus. Prompted by the Bitcoin price surge, a similar move was followed by Ethereum, and the entire cryptocurrency market was turned upside down in delirium.
Ethereum ran parallel with Bitcoin’s uphill climb, surging back over the $2,000 mark in the first few days of May. However, like a high-jumper suspended midway through his ascent, it has been consolidating its gains over the past month. Perhaps, with the earth tremors from the Headliner revealed, such a rise of Israel-Iran tensions has yet to shake Bitcoin and Ethereum from their lofty perch.
US Investors Keep Crypto Prices Afloat
Put your hats on, folks, crypto enthusiasts! That on-chain analyst Burak Kesmeci just dropped an X-airbomb: Uncle Sam, again, seems to be back in the business-buying of Bitcoin and Ethereum. Kesmeci’s data show the recent resiliency in the market is not that accidental, as it has been a matter of an influx of US buying power who’s the one propping up the prices against the bears.
Decoding the hidden messages in the crypto movements: the Coinbase Premium. Think of that as a secret pulse that measures Wall Street’s appetite for crypto. Basically, the Coinbase Premium Index is the difference between Bitcoin price on Coinbase, the platform for US institutions, and Binance, the international crypto giant. When Coinbase is more expensive, it means that US deep-pocketed bettors are buying hard; hence, it offers a view of institutional sentiment.
Imagine the Coinbase Premium as a crypto crystal ball. The bullish sentiment of investors in the US would have them willing to pay extra on Coinbase to obtain Bitcoin and Ethereum, pushing the Premium Index to the skies. You could think of it as the “USA! USA!” rally for digital heroes. But the moment the Premium dips below zero is when Uncle Sam presses the brakes, suggesting global traders are picking up the slack for cool off on U.S. consumption. Keep an ear open for the Premium; it is Wall Street whispering on what would be the next move for cryptocurrencies.
Let’s just forget about the FUD. A subtle indicator turns bullish for Bitcoin and Ethereum. For 47 consecutive days (except a one-day blip on May 29), Kesmeci’s Coinbase Premium Index has flashed vibrant green since May 9, 2024. The extended winning streak certainly murmur lies of heavy buying pressure exerted by sizable US institutional players who aren’t second-guessing themselves with global uncertainties. Are these players seeing something that the rest of us are missing?
Kesmeci added:
Despite the turmoil in the markets, Bitcoin and Ethereum remained strong, most likely because a silent buying wave has come into effect. Active institutional players and Bitcoin/Ethereum ETF investors (except Fidelity) are rushing to accumulate crypto via Coinbase. That sustained buying pressure is reflected in a consistent positive Coinbase Premium. In other words, smart money is out there, seeing long-term value, and providing some dipping cushion for Bitcoin and Ethereum.
Increasing unrest in Asia has seen Bitcoin and Ethereum defy gravity, becoming price stable. One secret explanation for such a phenomenon has been the rise in activity from US investors, who seemingly shore up the market. Usually, turbulent geopolitical events induce an exodus from riskier assets en masse; the crypto markets have shown a different side this time by being resilient.
Bitcoin & Ethereum Price
Bitcoin’s holding steady, chilling near $107,100. Ether’s barely blinked, inching up a sleepy 0.6% to about $2,420.
Featured image from iStock, chart from TradingView
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