Bitcoin staged a relief rally alongside equities on Wednesday, as U.S. President Donald Trump signaled that pro-crypto legislation is “very soon” to be finalized, while doubling down on his ultra-bullish outlook for the Dow Jones.
The “Crypto Capital” Vision
Speaking at the World Economic Forum in Davos, Switzerland, Trump reinforced his administration’s commitment to digital assets. The President’s remarks provided an immediate tailwind for BTC, which climbed 1.7% as he took the stage.
“To unleash innovation and financing, I’m working to ensure America remains the crypto capital of the world,” Trump told the Davos crowd, referencing the recently signed Genius Act. He added that Congress is currently fast-tracking a comprehensive market structure bill—covering Bitcoin and the broader ecosystem—which he expects to sign into law “very soon.”
The President also eased geopolitical jitters by clarifying that he would not seek to acquire Greenland by force. This pivot toward diplomacy sparked a broader market bounce, with the S&P 500 gaining 0.5%. Trump’s optimism extended to legacy finance, predicting that the Dow Jones would hit the 50,000 milestone and eventually “double” in short order.
Macro Headwinds: The Japan Factor
Despite the domestic optimism, institutional desks are closely monitoring escalating volatility in the Far East. Japanese 10-year government bond yields have surged to 2.29%, a level not seen since 1999.
With Japan’s debt-to-GDP ratio exceeding 240%, the spike in yields is raising questions about fiscal sustainability. Analysts at QCP Capital warn that this shift could serve as a major “volatility catalyst” for global bond markets, a trend that historically ripples into high-risk assets like crypto.
BTC Technicals: Filling the Gap
From a technical perspective, Bitcoin’s recent price action has served a dual purpose: cooling off over-leveraged positions and filling a significant CME futures gap near its 2026 opening price.
Market participants view this “roundtrip” as a healthy reset. “Bitcoin has established a solid buying wall here,” noted trader CW, suggesting the current support floor remains robust. While some analysts anticipate a brief “wick” below the 2026 open to flush out remaining weak hands, the consensus points toward a potential foundation for a sustained leg higher.
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