Tracked by Woofun AI data, bitcoin's premium on Coinbase (COIN.US) has dropped to its lowest point in four weeks, a metric that directly signals a marked weakening in American demand. This premium is defined as the price gap between bitcoin's dollar quote on Coinbase (COIN.US) and its USDT quote on Binance, with CryptoQuant's Coinbase (COIN.US) premium index quantifying the difference in percentage terms.
Tuesday's figures showed a premium of approximately -0.07%, which, when calculated against bitcoin's price of $75,900, translates to a gap of roughly $50. Although the margin is slight, it confirms feeble buying activity on the platform. The discount widened from the prior day's -0.02% to -0.07% following the failure of the Clarity Act to pass on Tuesday. This marks a stark reversal from late August and early September, when bitcoin climbed to near $80,000 and the premium turned positive for the first time in months. Since then, bitcoin's price has retreated to around $75,000.
Woofun AI compiled data suggests that the legislative standstill, combined with the price pullback, has intensified the cooling sentiment. Monetary policy adds another layer of strain. The Federal Reserve is set to announce its decision later on Wednesday, with markets widely expecting a 25-basis-point hike that would push the federal funds rate target range to 3.75% to 4%. Raising rates amid an energy supply shock could heighten pressure on economic growth. While elevated borrowing costs can curb demand and inflation, they do little to resolve oil supply disruptions, and they actually raise the debt financing expenses for companies heavily invested in artificial intelligence infrastructure.
Tensions in the Middle East keep energy prices high, with Brent crude hovering around $108 and WTI crude near $104, a cost burden that could sustain inflationary pressures. Meanwhile, the yield on the U.S. 10-year Treasury has climbed above 5%, exacerbating financial tightening. High yields, expensive oil, and regulatory uncertainty collectively create a challenging climate for bitcoin and other risk assets.