The prospect of cryptocurrency taking center stage in the world’s largest economy is becoming increasingly palpable, as media reports suggest that President-elect Donald Trump is poised to issue an executive order recognizing crypto as a national priority. The order, expected to be announced late Thursday, will also likely establish a crypto advisory body to champion the policy goals of the digital asset industry.
This comes on the heels of heightened speculation that Trump will support the creation of a strategic Bitcoin reserve on his first day in office, a move that would dramatically contrast the largely anti-crypto stance of the Biden administration, which saw over 100 enforcement actions taken against the industry.
Such a commitment to crypto by Trump marks a significant shift from his previous skepticism towards the industry. Ahead of the November elections, the President-elect embraced the digital asset market, sparking hope for more accommodating regulations and broader acceptance of digital currencies. The crypto industry, buoyed by this change in sentiment, is set to host the “Inaugural Crypto Ball” in Trump’s honor, hoping he will deliver on his campaign promises once he takes office on January 20.
However, despite these positive developments, there appears to be a muted anticipation among U.S. investors. The leading cryptocurrency, Bitcoin (BTC), is currently trading at a slight discount on the Nasdaq-listed Coinbase exchange compared to the global exchange Binance Holdings, indicating a lack of stateside demand.
According to data from CryptoQuant, the Coinbase premium indicator, which measures the spread between BTC’s price on Coinbase and Binance, shows a noticeable lack of bullish pricing on Coinbase. This is despite the November-December surge from $70,000 to over $108,000 being largely driven by U.S. investors, as evidenced by the consistent Coinbase premium during that period.
Perhaps the optimism surrounding Trump’s potential crypto-friendly policies was already factored into the November-December rally. Thus, it appears that U.S. traders are now adopting a ‘wait and see’ approach, holding off on significant investment until the President-elect follows through on his promises.
As of press time, BTC is trading at $101,600. Since mid-December, the price has mostly fluctuated between $90,000 and $108,000, according to data from CoinDesk Indices.
While the future of crypto in the U.S. may hang in the balance, the potential for significant policy changes under the incoming administration offers a promising glimpse into what might be a new era of digital asset adoption.
