#Bitcoin premium turned positive before Trump took office.#
Hot Topic Overview
Overview
In the lead-up to Trump's inauguration, the Bitcoin market saw a bullish rally, driven primarily by market expectations of a pro-cryptocurrency stance from the Trump administration. Bitcoin prices surged from $70,000 to over $108,000 between November and December, propelled largely by US investors, evident from the persistent Coinbase premium during the period. However, the Coinbase premium indicator has recently weakened, suggesting a decline in US investor demand for Bitcoin as they await whether Trump will deliver on his promises. Despite this, optimism remains in the market regarding the Trump administration, with expectations that Trump will announce cryptocurrencies as a national priority during his inauguration and establish a crypto advisory council, further boosting Bitcoin prices.
Ace Hot Topic Analysis
Analysis
Before Trump took office, Bitcoin’s premium turned positive, indicating a resurgence of interest in cryptocurrency among American investors. Previously, Bitcoin had been trading at a slight discount on Coinbase compared to Binance, suggesting weak US investor demand. However, with Trump assuming the presidency, market expectations emerged that he would enact pro-cryptocurrency policies, such as establishing a strategic Bitcoin reserve and declaring cryptocurrency a national priority. These expectations propelled US investor interest in Bitcoin, leading to the positive premium on Coinbase. Nevertheless, some analysts also cautioned that Bitcoin’s price could decline if Trump failed to make significant pronouncements on his first day in office.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
After Trump took office, the United States will make cryptocurrency a national priority and may establish a strategic Bitcoin reserve, which will drive up the price of Bitcoin.
Trump's policies could lead to increased interest in cryptocurrency among US investors, leading to a correction in the Coinbase premium.
Trump's policies could lead to a relaxation of US cryptocurrency regulations, attracting more investors to the market.
Despite the market's optimism about Trump's policies, the price of Bitcoin could fall if Trump fails to deliver on his promises.