Bitcoin Coinbase Premium hits monthly low as CLARITY Act vote squeezes US demand

Bitcoin demand on Coinbase experienced a significant decline after the US Senate voted against the CLARITY Act, leading traders to send BTC to exchanges at an unrealized loss. Senate failure to obtain the required 60 votes left limited options for bringing the crucial crypto legislation back to the debate table before 2027. Data from CryptoQuant indicates that the Coinbase Premium, which measures the price difference between Coinbase's and Binance's BTC/USDT pairs, reached a one-month low of -0.079 on Tuesday.

The premium had briefly turned positive at the start of the week but continued to fall throughout Monday. Currently, the Coinbase Premium is at its lowest level since August 16, when BTC/USD was around $63,000. Onchain analyst Willy Woo noted that the divergence in seller behavior between Coinbase and other non-US exchanges intensified after the vote, with Binance CVD moving higher while Coinbase continued to decline.

This scenario is described as "bullish" by Woo. Additionally, the majority of reactive selling following the CLARITY failure came from newer Bitcoin investors, with short-term holders transferring up to 34,000 BTC to exchanges at a loss on a rolling 24-hour basis.