Bitcoin has spent recent weeks hovering around the critical $90,000 level as rising geopolitical tensions ripple through global markets. The volatility has not been limited to crypto, with equities, bonds, and commodities also reacting to uncertainty tied to tariffs and international relations. These pressures came into sharp focus during a Davos panel discussion, where Coinbase CEO Brian Armstrong clashed with France’s central bank chief over stablecoin yields and the U.S. approach to crypto regulation. The exchange highlighted growing questions about the future direction of digital assets and the regulatory clarity needed for the market to mature.
Joining Remy Blaire to unpack the implications was Andy Baehr, Head of Product and Research at CoinDesk Indices. Baehr pointed to ongoing frustration within the industry, particularly surrounding delays to the Clarity Act in the Senate Banking Committee. The legislation would allow companies to share yields earned by stablecoin issuers from Treasuries and other yield-bearing assets while preserving the non-yielding nature of stablecoins themselves. Its continued stalling has weighed on sentiment as 2026 begins with expectations of renewed momentum across the crypto sector.
Baehr described the current stage of crypto’s evolution as a “college sophomore year,” reflecting an industry still growing into itself. Just over a year after the inauguration, crypto has experienced sharp swings, including a difficult first quarter in 2025, followed by strong Ethereum-driven rallies, before ending the year on a softer note. These cycles, he said, underscore the tension between rapid innovation and the regulatory oversight that must evolve alongside it.
The recent IPO of BitGo marked another milestone, signaling progress toward broader acceptance and institutional integration. As a key crypto custodian, BitGo plays a vital role in enabling asset tokenization and stablecoin adoption. Baehr emphasized that custodians are foundational to expanding crypto infrastructure and making these tools accessible to a wider range of market participants. He noted that the year ahead could bring meaningful progress as firms adapt to shifting conditions.
The conversation also turned to emerging data trends shaping the crypto market. Baehr highlighted a growing divide between large-cap digital assets and smaller tokens within the CoinDesk 20 index. The addition of BNB to the index reflects this shift, signaling that assets with scale, liquidity, and clearer growth trajectories are increasingly driving investor attention. This concentration could bring greater stability and bolster confidence as institutional participation continues to expand.
Given these dynamics, investors are being encouraged to focus on established names as capital flows continue to realign. Stability remains critical as the market evolves, particularly with newly introduced ETF products offering broader exposure to the asset class. The expanding range of investment vehicles suggests crypto’s role in portfolios is likely to grow as adoption deepens.
As the crypto market moves through this volatile but formative period, regulatory developments, macroeconomic forces, and technological innovation will play decisive roles. Understanding how these factors intersect will be essential for investors navigating a landscape defined by rapid change and long-term potential. The ongoing debate over crypto regulation and stablecoin frameworks is set to remain central, shaping not only market direction but also crypto’s integration into broader economic systems tied to impact investing and the Sustainable Development Goals (SDGs).