- Bitcoin and Ethereum logged their best Q2 performance since the 2020 bull run
- The strong Q2 rebound erased the significant market losses from the first quarter
- Institutional demand through spot Bitcoin ETFs fueled the market’s recovery
Bitcoin and Ethereum both recorded their best quarterly performances since 2020 in the second quarter of 2025, with Bitcoin rising approximately 30% and Ethereum surging around 36%. The strong gains marked a major market recovery after both assets suffered significant losses in the first quarter, highlighting a year of high volatility for the crypto market.
A Weak Start Followed by a Strong Rebound
The first quarter of 2025 was marked by steep declines for both assets. Bitcoin fell by 11.82%, a sharp reversal from its strong 47.73% gain in the fourth quarter of 2024. Ethereum suffered an even steeper fall of 45.41%, its worst quarterly performance since the 2022 bear market. This downturn coincided with increased global uncertainties, including trade tensions and geopolitical conflicts that prompted a “risk-off” sentiment in speculative markets.
However, the second quarter saw a decisive rebound. Ethereum recovered nearly 80% of its first-quarter losses, climbing back to the $2,800 price level after bottoming out near $1,400, while Bitcoin also advanced to close the quarter near six figures, maintaining its long-term upward trend.
Related: Crypto Market Rallies on Ceasefire News; Bitcoin and Ethereum ETFs See $659M Inflow in Total
What Do Historical Trends Show?
Historical data from 2013 to 2025 shows different seasonal trends for the two leading
cryptocurrencies. Bitcoin’s strongest average quarterly return occurs in Q4, with an average gain of 85.42%, followed by Q1 (+51.21%), Q2 (+27.11%), and Q3 (+5.57%). Median returns align with this pattern, with Q4 showing a median gain of 52.31%.
Bitcoin has experienced quarterly spikes, such as a 539.96% gain in Q1 2013 and 103.17% in Q1 2021. However, the asset also saw large declines, including a 56.20% drop in Q2 2022 and a 42.16% loss in Q4 2018.
Ethereum’s quarterly returns display more strong swings. Its peak average returns are in Q1 (+77.40%) and Q2 (+63.80%), while Q4 yields a more moderate 23.85%, and Q3 barely registers gains (+0.78%). Median returns confirm steadier gains in Q2 (+16.91%) and Q4 (+22.59%).
Related: Divergence in Crypto Sentiment Pits a Bullish XRP Against BTC and ETH
Ethereum’s largest quarterly increases include 518.14% in Q1 2017 and 453.71% in Q2 2017. On the downside, Q1 2025 showed a steep loss of 45.41%, while Q3 2018 dropped 48.69%. This indicates higher volatility in Ethereum’s returns compared to Bitcoin.
Role of Institutions in Q2’s Market Recovery
Institutional demand contributed to Q2’s market recovery, especially through spot Bitcoin ETFs. BlackRock’s IBIT led a rise in trading volume in June, with over 210 million shares traded in the week ending June 27. This represented a 22.2% increase week-over-week and reversed a month-long decline.
Capital inflows into IBIT remained strong, with net inflows of $1.31 billion reported for the week ending June 27, surpassing the previous week’s $1.23 billion. Over June, IBIT attracted $3.74 billion, reflecting large institutional interest.
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