As cryptocurrency prices continue to climb, Bitcoin and Ethereum have once again captured the market’s attention. Ethereum, in particular, has seen its trading price surge by 42.28% in the past month. These price increases have sparked widespread discussions about the direction of the cryptocurrency market.
Bitcoin and Ethereum Price Performance
As of Wednesday morning, Australian Eastern Standard Time, Bitcoin (CRYPTO: BTC) had risen by 0.21%, reaching $105,692.10 (approximately AUD 163,584.89). The world’s first and largest cryptocurrency, Bitcoin, has increased by 9.76% over the past month, recovering some of the losses it experienced after a 16% drop in a single day back in February. Year-to-date, Bitcoin has risen by 8.19%.
Meanwhile, Ethereum (CRYPTO: ETH) has also performed strongly. As of Wednesday morning, the cryptocurrency had gained 0.21%, with a trading price of $2,608.58 (approximately AUD 4,019.17). Since early May, Ethereum’s price has surged by 42.28%, outpacing Bitcoin’s growth and helping it recover some of the losses from earlier in the year.
Why Are Cryptocurrency Prices Rising?
According to Finance Magnates, several factors are contributing to the rising cryptocurrency prices, including macroeconomic changes, a return of institutional investment, and strong technical momentum. For Bitcoin, the price recovery is largely attributed to on-chain data showing large holders buying the dip, which is often a bullish signal indicating that Bitcoin’s price may continue to rise.
Additionally, by early June 2025, Bitcoin’s price has been seen as a symbol of resilience. Geopolitical tensions and upcoming policy deadlines have led traders to view Bitcoin as a hedge against market uncertainty, which has contributed to its price revival.
Another driving force behind Bitcoin’s rise is the influx of funds into Bitcoin exchange-traded funds (ETFs). eToro Australia cryptocurrency analyst Reece Hobson notes that institutional funds injected $2.8 billion into the market through U.S. spot Bitcoin ETFs in May, with total assets in ETFs exceeding $122 billion.
Hobson adds, “From a broader perspective, since 2003, an estimated $150 billion to $225 billion has flowed into gold ETFs.”
Key Drivers Behind Ethereum’s Price Increase
Similar to Bitcoin, the rise in Ethereum’s price can also be attributed to changes in the macroeconomic landscape, institutional adoption, and technical upgrades. The restructuring within the Ethereum Foundation has generated excitement about upcoming protocol upgrades, increasing investor interest in the network.
Finance Magnates reports, “The Ethereum Foundation has allocated more resources to protocol development, injecting new energy into the Ethereum ecosystem and attracting more institutional and retail investors.”
Key Factors Driving Ethereum’s Price Surge
According to cryptocurrency research firm CoinMarketCap, several factors are driving Ethereum’s price, including network upgrades, whale accumulation, and ETF fund flows. The report states: “Due to scaling upgrades, whale accumulation, and ETF fund inflows, market sentiment for Ethereum is leaning bullish, although there are warnings that short-term volatility may occur due to insufficient exchange liquidity.”
The report also highlights that Ethereum’s scaling momentum, supply tightening dynamics, and innovations in decentralized finance (DeFi) are all contributing to its strong growth potential. However, the firm also cautions that Ethereum’s price increases will remain influenced by the execution of scaling upgrades, the development of ETFs, and broader macroeconomic liquidity trends.
While short-term resistance and neutral sentiment may pose risks, the influx of institutional funds and whale accumulation signals a bullish market trend by the end of 2025.
As the global cryptocurrency market continues to evolve, investors’ focus on Bitcoin and Ethereum is intensifying. The future performance of these cryptocurrencies will remain subject to a complex interplay of economic and technological factors.
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