Bitcoin’s ‘Coinbase Premium’ Subdued as Trump Plans to Elevate Crypto to National Policy Status

trump bitcoin
Share:

Reports are buzzing about a potentially groundbreaking shift in U.S. policy regarding cryptocurrencies, as President-elect Donald Trump, once a skeptic, has now thrown his full support behind the digital asset industry.

Despite the optimism generated by Trump’s pivot, evidenced by a planned ‘Inaugural Crypto Ball’ by the industry in his honor, U.S. investors seem to remain cautious.

According to a recent report from Bloomberg late Thursday, Trump is expected to issue an executive order declaring cryptocurrencies a national imperative.

This move could include the establishment of a crypto advisory body to push the industry’s policy objectives.

There are also heightened expectations that Trump may endorse the formation of a strategic bitcoin reserve as soon as he takes office on January 20.

While these developments paint a promising picture for cryptocurrency under Trump’s leadership, contrasting sharply with the previous administration’s tough stance, the reaction among U.S. investors has been surprisingly muted.

The ‘Coinbase Premium,’ an indicator tracking the price difference of bitcoin on the U.S.-based Coinbase exchange versus Binance, a global exchange, shows bitcoin trading at a slight discount stateside.

Despite bitcoin’s recent price surge from $70,000 to over $108,000 in November and December, driven by U.S. investors, current Coinbase pricing hasn’t matched this bullish trend.

This suggests that perhaps much of the optimism has already been priced in during the late-year rally, and traders are now waiting to see if Trump will indeed follow through on his campaign promises.

As of now, bitcoin’s price hovers around $101,600, with fluctuations typically ranging from $90,000 to $108,000 since mid-December, as per CoinDesk Indices.

Whether or not the upcoming changes will invigorate the U.S. market remains a key watchpoint for investors and industry observers alike.

Share: