Bitcoin's 'Coinbase Premium' Muted Amid Reports Trump Plans to Designate Crypto a National Policy

Bitcoin's 'Coinbase Premium' Muted Amid Reports Trump Plans to Designate Crypto a National Policy

Bitcoin Trades at Slight Discount on Coinbase, Reflecting U.S. Investor Sentiment

By Omkar Godbole | Edited by Sam Reynolds
Updated Jan 17, 2025, 8:11 a.m. UTC
Published Jan 17, 2025, 5:49 a.m. UTC

What You Need to Know:

• Bitcoin is trading at a slight discount on Coinbase compared to Binance, signaling muted U.S. investor demand.
• President-elect Donald Trump is expected to prioritize crypto policy, raising expectations for easier regulations.
• BTC’s Coinbase premium, which surged during the November-December rally, remains muted despite recent positive developments.

As the U.S. prepares for President-elect Donald Trump to take office, there are growing signs of optimism for the crypto industry in the world’s largest economy. However, a key market indicator reveals that U.S. investor enthusiasm for Bitcoin (BTC) may not be as strong as some had hoped.

Bloomberg reported late Thursday that President-elect Trump is likely to issue an executive order designating crypto as a national policy priority once he takes office. The order could also include the creation of a crypto advisory to help advocate for the industry’s policy goals. This announcement comes at a time when there are heightened expectations that Trump will support the establishment of a strategic bitcoin reserve, potentially marking a significant shift in U.S. crypto policy.

Trump, who was once a critic of cryptocurrency, has shown greater acceptance of the industry leading up to the November elections. This shift raised hopes for more favorable regulations and broader adoption of digital assets. In fact, the crypto community is organizing the "Inaugural Crypto Ball" this Friday, hoping Trump will fulfill his promises once he assumes office on January 20.

An executive order promoting crypto as a national priority would sharply contrast the stance of the outgoing Biden administration, which has been marked by aggressive enforcement actions against the industry, with over 100 regulatory actions taken.

However, despite the growing optimism surrounding Trump's upcoming administration, Bitcoin is currently trading at a slight discount on Coinbase compared to Binance, the world’s largest cryptocurrency exchange. This indicates that U.S. demand for the leading digital currency may still be relatively muted.

A CryptoQuant chart highlighting the Coinbase premium—the spread between Bitcoin's price on Coinbase and Binance—shows a distinct shift since the late 2024 price rally. During the November-December surge, when Bitcoin’s price soared from $70,000 to over $108,000, U.S. investors drove much of the demand, as reflected in the Coinbase premium.

Despite expectations for major policy shifts under Trump, the Coinbase premium has remained subdued, suggesting that U.S. traders may have already priced in much of the optimism during the late-2024 rally. Bitcoin’s price has fluctuated between $90,000 and $108,000 since mid-December, with the coin trading at $101,600 at the time of writing, according to CoinDesk Indices data.

As a result, it appears that U.S. investors are awaiting concrete actions from the incoming president before showing greater enthusiasm for Bitcoin.