Bitcoin and US stocks rose on Wednesday, after Donald Trump stated that he hoped to sign legislation governing market structures for digital assets as soon as possible during his speech at the World Economic Forum in Davos.
These remarks have helped to boost sentiment in risk assets. TradingView data showed that Bitcoin gained daily about 1.7% at the time of the speech, whereas the S&P500 was up by 0.5%.
Trump announces near-term crypto laws
Trump stated in Davos that his goal is to ensure America “remains the crypto capital” of the world. He also said he signed into law the landmark Genius Act.
According to the World Economic Forum broadcast, he stated, “Congress is now working hard to pass crypto market structure legislation – Bitcoin and all the others — that I will sign as soon as possible, opening up new paths for Americans to achieve financial freedom.”
Trump told the attendees that he wouldn’t use force to seize Greenland, and predicted a “doubling of the stock market.”
He predicted that Dow Jones Industrial Average will “hit 50,000”, and the change would occur “in a short time.”
Price context and market reaction
Bitcoin tried to continue a relief rebound around Wall Street’s opening as traders considered the policy remarks.
Cointelegraph had reported earlier in January that Bitcoin’s price was returning to its starting point of 2026, closing the gap on CME Group’s Bitcoin Futures Market and leaving gaps over the price.
Several market participants have pointed out that there is a visible interest in buying.
Trader CW stated that “$BTC is a strong buying wall,” describing it as a firm support line.
Japanese bonds are a major macro-headwind
Stress in Japan’s bond market was a hot topic around the world.
QCP Capital reported that, after years of rates near zero, Japanese 10-year yields are now at around 2.29%. This is the highest level since 1999.
This firm emphasized structural pressures such as government debt that exceeds 240% GDP, and projected debt service to consume roughly one quarter of all fiscal expenditures in 2026.
Kobeissi Letter, a trading resource, said that demand for Japanese government bond was “crashing,” and warned of a worsening situation.
QCP Capital warned that spillovers to global bonds position Japan as the key catalyst for volatility.
Next up for traders
Analysts focus on whether Bitcoin will be able to hold the recent lows in local currencies and continue on its upward trend.
Daan Crypto Trades stated that it is “good to leave a little wick under the annual open”, so the traders are able to reassess after the level has been removed.
The macro-environment and policy outlook appear to pull in different directions.
The US Digital Assets Regulations have provided a temporary boost, but rising Japanese yields as well as the fragility of Japan’s bond market has kept broader risks in check.
Next phase will depend on Washington’s follow-through and whether the macro pressures are eased.
The traders believe that if the momentum of legislative reforms continues and rates stabilize globally, the conditions for a durable economic recovery will improve.
The post Bitcoin rises after Trump promises to keep US as ‘crypto-capital of the world” may be updated with new information.
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