Coinbase Bitcoin negative premium has not improved! Does it indicate that BTC's uptrend cannot be sustained?

President Trump is about to take office, and his cryptocurrency policy has become the focus of attention of the global market. However, Coinbase Bitcoin premium data shows that US investors' interest in BTC has not increased significantly, casting a shadow on the future trend of the BTC market.

Coinbase premium reflects the BTC price difference between Coinbase and Binance. From November to December last year, during the surge in Bitcoin prices, the Coinbase premium rose significantly, indicating that American investors were strong in purchasing; but the premium has narrowed significantly, and even negative premiums have occurred many times, suggesting weak demand from American investors.

BTC Coinbase Premium Index (CryptoQuant)

Optimistic market expectations may have been fulfilled in advance

Analysts believe that the current wait-and-see attitude of US investors may be due to the fact that the market has digested Trump's positive policies in advance in the rise at the end of last year. In addition, the price of Bitcoin has continued to fluctuate between $90,000 and $108,000 since December last year, lacking momentum for further breakthroughs.

How will the Trump administration treat cryptocurrencies?

According to Bloomberg, Trump may issue an executive order on the day of taking office, listing cryptocurrencies as a national policy priority and establishing a special cryptocurrency advisory committee. The move may even involve building a “strategic Bitcoin reserve” to consolidate U.S. leadership in the cryptocurrency space.

However, if Trump's mention of cryptocurrencies is limited or completely ignored, it may imply that his policy support for cryptocurrencies is insufficient, causing market selling pressure.

Whatever Trump ultimately takes, volatility in the cryptocurrency market is expected to intensify next week, and investors need to be cautious about risks.

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