The stars cannot align more positively for cryptocurrency in the U.S., the world’s largest economy, if the latest media reports are anything to go by. However, one key indicator suggests a lack of excitement among U.S. investors.
Late Thursday, Bloomberg reported that President-elect Donald Trump is likely to issue an executive order declaring cryptocurrency a national imperative or priority, asserting a voice in his administration. Trump may also announce the formation of a crypto advisory that will advocate for the digital asset industry’s policy goals.
This report coincides with increased anticipation that Trump will support the establishment of a strategic bitcoin reserve on his first day in office.
Historically a crypto skeptic, Trump has shown newfound support for the industry leading up to the November elections, raising hopes for more favorable regulations and increased adoption of digital assets. Additionally, on Friday, the crypto industry plans to host the “Inaugural Crypto Ball” in support of Trump, with the hope that he will deliver on his poll promises post-inauguration on Jan. 20.
Should Trump issue an executive order to establish a strategic bitcoin reserve and prioritize cryptocurrency policy, it would be a stark contrast to the largely anti-crypto stance of the Biden administration, which has seen over 100 enforcement actions against the industry.
Despite potential positive developments, BTC is currently trading at a slight discount on the Nasdaq-listed Coinbase exchange compared to global leader Binance Holdings, indicating muted domestic demand for the leading cryptocurrency.
CryptoQuant has produced a chart illustrating fluctuations in the Coinbase premium indicator, which measures the price disparity between BTC on Coinbase and Binance. Notably, BTC’s surge from $70,000 to over $108,000 during November-December was largely driven by U.S. investors, as evident from the consistent Coinbase premium during that time.
Currently, however, there has not been a similar bullish trend on Coinbase, despite optimism surrounding potential developments in the U.S. It’s possible that the enthusiasm for Trump’s presidency was already integrated into the market during the November-December rally, and domestic traders are now holding back, awaiting tangible action from the incoming administration.
As of the latest updates, BTC is being traded at $101,600, maintaining a price range between $90,000 and $108,000 since mid-December, according to CoinDesk Indices data.
