At the World Economic Forum in Davos, Switzerland, discussions on cryptocurrency highlighted the influence of US politics and growing Wall Street interest. Key speakers addressed market uncertainties tied to President Trump and expressed optimism for the industry's future. Traditional finance leaders endorsed blockchain as essential for modernization.
The World Economic Forum, held this week in Davos, Switzerland, featured scattered references to cryptocurrency amid broader global talks. Attendees noted the event's reminder that crypto operates within the larger sphere of politics and business.
One prominent theme was the impact of US President Donald Trump's policies. Crowds waited hours to hear his speech, which ranged from critiques of windmills and foreign affairs to a brief mention of crypto. Trump stated he is “working to ensure America remains the crypto capital of the world.” However, his administration's foreign policy stances have fueled market volatility, including the “Sell America” trade that saw investors sell US assets and weaken the dollar. Bitcoin dropped 6.6% in the past seven days, mirroring declines in other risk assets like tech stocks.
Despite these pressures, industry leaders projected confidence. Ripple CEO Brad Garlinghouse described himself as “very bullish” on crypto's prospects for 2026, predicting “We’ll see an all-time high” on the event's sidelines. He credited Trump's actions, such as signing a stablecoin bill, issuing pro-crypto executive orders, pardoning key figures, and appointing allies to government roles, for reversing prior crackdowns.
Wall Street's engagement emerged as another focal point. BlackRock CEO Larry Fink called updating the financial system with blockchain “necessary,” adding it would reduce fees and enable “more democratisation.” He envisioned a common blockchain cutting corruption. UBS CEO Sergio Ermotti echoed this, stating “Blockchain is the future for traditional banking.” Such moves include exploring stablecoins, crypto-linked ETFs, and blockchain infrastructure. Asset manager Grayscale projects tokenization growing to a $35 trillion market by 2030.
These insights underscore crypto's integration with traditional finance, even as political uncertainties persist.
