Coinbase (COIN.US) premium turned negative: US buying cold

According to Woofun AI, Bitcoin's premium on Coinbase (COIN.US) has fallen to its lowest level in four weeks. This indicator directly reflects a significant weakening in demand in the US market.

The so-called premium is the difference between Bitcoin's US dollar price on Coinbase (COIN.US) and the USDT price on Binance. CryptoQuant's Coinbase (COIN.US) Premium Index quantifies this gap as a percentage. Tuesday's data showed a premium of around -0.07%, a difference of about $50 when converted to the $75,900 Bitcoin price. Although the margin was small, it confirmed the platform's weak buying. Previously, the Clarity Act failed to pass on Tuesday, causing the discount to be extended to -0.07% from -0.02% the day before. This is in stark contrast to the end of August and the beginning of September, when the price of Bitcoin rose to close to $80,000, and the premium was corrected for the first time in months. Bitcoin's price then fell back to around $75,000.

Data compiled by Woofun AI shows that the legislative impasse and price pullbacks have combined to exacerbate the cooling of market sentiment.

Monetary policy poses another major pressure. The Federal Reserve will announce its decision later on Wednesday. The market generally expects an increase of 25 basis points, raising the federal funds rate target range to 3.75% to 4%. Interest rate hikes under the impact of energy supply may increase the pressure on economic growth. Although high borrowing costs can curb demand and inflation, they cannot solve oil supply disruptions; on the contrary, they push up debt financing costs for companies that have invested heavily in artificial intelligence infrastructure.

Tensions in the Middle East have made energy prices high. Brent crude oil is about $108 and WTI crude is close to $104, which is expensive or continues to drive up inflation. Meanwhile, the yield on US 10-year Treasury bonds rose above 5%, exacerbating financial austerity. High yields, expensive oil, and regulatory uncertainty all work together to create an unfavorable environment for Bitcoin and other risky assets.