Bitcoin rose alongside US equities on Wednesday after President Donald Trump said he hopes to sign market structure legislation for digital assets “very soon” during a World Economic Forum speech in Davos.
The remarks helped lift sentiment across risk assets. Data from TradingView showed daily Bitcoin gains of about 1.7% around the time of the address, while the S&P 500 was up 0.5%.
Trump signals near-term crypto legislation
In Davos, Trump said he is working to “ensure America remains the crypto capital of the world,” adding that he had signed the “landmark Genius Act” into law.
“Now, Congress is working very hard on crypto market structure legislation — Bitcoin, all of them — which I hope to sign very soon, unlocking new pathways for Americans to reach financial freedom,” he said, according to the World Economic Forum’s broadcast of the address.
Trump also told attendees he would not use force to take over Greenland and predicted that “the stock market is going to be doubled.”
He said the Dow Jones Industrial Average would “hit 50,000” and that the move would come “in a relatively short period of time.”
Market reaction and price context
Bitcoin attempted to extend a relief bounce around the Wall Street open as traders weighed the policy comments.
Earlier in January, Cointelegraph reported a roundtrip in price action that took Bitcoin back near its 2026 starting level, closing a gap in CME Group’s Bitcoin futures market and leaving gaps above the price.
Some market participants pointed to visible buy interest.
Trader CW said “$BTC has a solid buying wall,” describing the support line as strong.
Japanese bonds add a macro headwind
Elsewhere, stress in Japan’s government bond market remained a global talking point.
QCP Capital noted that after decades of near-zero rates, 10-year Japanese yields have risen to around 2.29%, the highest since 1999.
The firm highlighted structural strains, including government debt exceeding about 240% of GDP and debt servicing projected to absorb roughly a quarter of fiscal spending in 2026.
Trading resource The Kobeissi Letter said demand for Japanese government bonds was “crashing,” warning that the situation was deepening.
QCP Capital cautioned that the spillover to global bonds positions Japan as a key volatility catalyst.
What traders are watching next
Analysts are focused on whether Bitcoin can hold recent local lows and build on the bounce.
Daan Crypto Trades said it would be “good to have a bit of a wick below the yearly open” so that the level is taken out, after which traders can reassess.
For now, the policy outlook and macro backdrop appear to be pulling in opposite directions.
Signs of progress on US digital-asset rules offered a short-term lift, while rising Japanese yields and bond-market fragility kept broader risk sentiment in check.
The next phase likely hinges on follow-through in Washington and whether macro pressures ease.
If legislative momentum persists and global rate volatility stabilizes, traders say the backdrop for a more durable recovery could improve.
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