The World Economic Forum in Davos is shaping up to be a key venue for major economic negotiations this year. With trade and deal-making taking center stage, we're likely to see significant shifts in how international markets—including crypto—react to new policies and agreements.

Geopolitical tensions and territorial discussions are adding an extra layer of volatility to the mix. When world leaders gather to hash out trade deals, it typically signals broader movements in risk appetite across asset classes. Crypto markets have historically been sensitive to macroeconomic uncertainty and shifts in international relations.

The focus on commerce and negotiations at Davos could either boost confidence in risk assets if agreements lean toward stability, or trigger hedging behavior if tensions escalate. For traders monitoring macro trends, this is a crucial moment to watch how traditional finance sentiment translates into crypto market movements. The outcomes here may well set the tone for Q1 market dynamics.