Bitcoin’s Coinbase Premium Shrinks Following News of Trump’s Potential National Policy Shift for Crypto.

Bitcoin (BTC) faces a mixed market outlook ahead of President-elect Donald Trump’s inauguration, with some investors maintaining optimism while others await clearer signals from the new administration. According to reports, Trump is expected to issue an executive order on his first day in office that could prioritize cryptocurrency policy, including support for creating a strategic bitcoin reserve.

Despite this anticipation, Bitcoin has not shown the same upward momentum seen during the November-December rally, where prices surged from around $70,000 to over $108,000. Currently, BTC is trading at just above $101,000, fluctuating between $90,000 and $108,000 since mid-December, signaling caution among U.S. investors.

Data from CryptoQuant reveals that BTC is trading at a slight discount on Coinbase compared to Binance, a sign of relatively muted U.S. demand despite the optimism surrounding Trump’s pro-crypto stance. The Coinbase premium indicator, which measures the price difference between BTC on the two exchanges, shows limited movement, further indicating that U.S. traders are waiting for concrete actions from the new administration.

The upcoming “Inaugural Crypto Ball” event, held by the crypto industry in support of Trump, underscores the market’s expectation for positive changes. However, there’s uncertainty about how quickly these changes will materialize, with traders holding off on big moves until Trump’s policies are more clearly defined.

While Trump’s executive order could mark a major shift for the industry, Bitcoin’s current price action reflects a more cautious approach from U.S. traders who are unsure of how fast the crypto-friendly policies will take shape under the new leadership.