Bitcoin Coinbase Premium Surge as U.S. Investors Eye Trump Inauguration

Bitcoin interest from U.S. investors rises ahead of Donald Trump's inauguration, pushing Coinbase premium into the green

Bitcoin (BTC) has seen a surge in U.S. investor interest, marking a notable rebound in the Coinbase premium metric as the digital asset approaches the $100,000 threshold. The renewed buying activity is coinciding with the lead-up to the inauguration of U.S. President-elect Donald Trump, sparking speculation about potential pro-crypto policies that could further fuel the bullish sentiment surrounding Bitcoin.

U.S. Investors Show Renewed Interest in Bitcoin

On January 17, just days before the inauguration, on-chain data from CryptoQuant revealed a dramatic reversal in U.S. market sentiment toward Bitcoin. The Coinbase premium, which tracks the difference between the BTC/USD price on Coinbase and the BTC/USDT price on Binance, entered positive territory for the first time since January 6. This shift indicates a renewed interest from U.S. investors, who appear to be positioning themselves ahead of Trump's presidency.

CryptoQuant contributor Burak Kesmeci pointed out that U.S. investors are increasingly bullish as Bitcoin edges closer to the $100,000 milestone. The recent Coinbase Premium Index (CPI) readings signal a market dominated by buyers, suggesting a shift toward stronger buying pressure from the U.S. market.

“The CPI data confirms that U.S. investors are reclaiming dominance in the market as Trump prepares to take office,” Kesmeci said in a Quicktake blog post. "With only a few days left until the inauguration, U.S. investors are clearly taking a bullish stance."

A positive Coinbase premium reflects increased buying activity among U.S. investors, while a negative premium indicates a more cautious approach. Since Bitcoin hit its all-time high of $108,000 earlier this year, the premium had mostly remained in negative territory, signaling a more subdued U.S. market response. However, with Trump’s inauguration just around the corner, the premium’s shift to positive territory indicates a potential change in sentiment.

Bitcoin Price Action Hits $102,000

As of January 17, Bitcoin’s price action has returned to the key $102,000 level, just ahead of the final U.S. trading session before inauguration day. The price rise has been accompanied by a wave of short liquidations, as traders betting against Bitcoin have been forced to cover their positions.

According to data from CoinGlass, $60 million in BTC short positions were liquidated within a 24-hour period, reflecting the impact of the price surge. Many traders had been expecting further downward movement, but Bitcoin’s return to six-figure territory has caught them off guard.

Popular trader Daan Crypto Trades commented on the market dynamics, noting that the start of 2025 has been volatile. However, with Bitcoin back in the green, the market appears to be regaining its momentum. "The year is back in line with most of its recent years," he wrote on social media.

Daan Crypto Trades also pointed out that Bitcoin’s performance in Q1 has historically been strong, particularly in years following a halving event (2013, 2017, and 2021). This trend suggests that the early months of 2025 could continue to favor bullish momentum for the cryptocurrency.

The Big Question: How Will Trump’s Presidency Impact Bitcoin?

With the market showing signs of optimism ahead of the inauguration, the big question remains: How will this momentum influence Bitcoin’s trajectory under Trump’s administration? Speculation continues to swirl about potential pro-crypto policies that could encourage institutional investment and further drive Bitcoin’s rise.

As rumors of Trump’s crypto-friendly stance gain traction, U.S. investors appear to be positioning themselves for what could be a favorable environment for Bitcoin. If the incoming administration follows through with positive announcements, it could further catalyze the market and push Bitcoin to new highs in 2025.

Conclusion

Bitcoin’s resurgence in the U.S. market, reflected in the positive Coinbase premium and the asset’s return to $102,000, highlights the growing optimism among U.S. investors as the inauguration of President-elect Donald Trump approaches. With speculation mounting over pro-crypto policies, the market could be poised for a new phase of growth. As Bitcoin continues to gain traction, both retail and institutional investors will be watching closely to see how the political landscape under Trump’s leadership influences the cryptocurrency’s future.