Bitcoin Takes Center Stage at Davos Debate: Trump Pushes for Crypto Leadership as Markets React to Tariff Policy

Bitcoin Taken Seriously on the World Stage

This year's World Economic Forum in Davos made clear that Bitcoin has definitively left behind its status as a fringe topic. In panels, speeches, and direct confrontations between policymakers, central bankers, and business leaders, the cryptocurrency was treated as a monetary policy, geopolitical, and societal variable ^[1].

Trump Positions U.S. as "Crypto Capital"

U.S. President Donald Trump placed Bitcoin in an explicitly geopolitical context at the forum. "I am working to ensure that America remains the crypto center of the world," Trump declared in Davos ^[1]. He referenced ongoing legislative processes in the U.S. Congress, including the Crypto Market Structure Act, which he said he could sign soon ^[1].

Trump justified his initiative not only domestically but also with global power considerations: "I did this for two reasons. First, because it was politically smart. But much more important: China wanted this market too, just as they want the AI market" ^[1].

Eric Trump: Banks Blocking Crypto Legislation

Eric Trump sharply criticized the influence of established financial institutions on his stage in Davos. "The big banks have had an absolute monopoly over our financial system for years," he said ^[1]. He explained that banks maintain inefficient structures like payment processing delays to derive economic benefits from them. "Why can't you make a wire transfer after five o'clock on a Friday afternoon? Because the big banks love sitting on hundreds of billions of dollars over a long weekend and earning interest on it," Trump Junior elaborated ^[1].

This resistance also explains the blockade against clear crypto regulation: "And that's exactly why the big banks are doing everything they can to stop crypto legislation" ^[1].

Direct Showdown: Coinbase CEO vs. Central Banker

A remarkable confrontation occurred between Coinbase CEO Brian Armstrong and French central bank chief François Villeroy de Galhau. Armstrong argued that today's monetary system only came into existence in 1971 when Nixon abandoned the gold standard, and that we are now witnessing the birth of a Bitcoin standard ^[1].

The French central bank chief disagreed: "I trust independent central banks with a democratic mandate more than private issuers of Bitcoin" ^[1]. Armstrong fundamentally corrected this characterization: "Bitcoin is a decentralized protocol. There actually is no issuer. To the extent that central banks are independent, Bitcoin is even more independent. There is no country, no company, and no single person that controls Bitcoin" ^[1].

This statement led to laughter in the audience, illustrating the differing fundamental assumptions about money and sovereignty even at the highest levels ^[1].

Ray Dalio Warns of Monetary Order Collapse

Investor Ray Dalio of Bridgewater Associates described a structural upheaval in the global monetary system. "The existing monetary order is falling apart," Dalio explained in Davos ^[1]. Government debt securities are increasingly losing their role as a reliable store of value. "Fiat currencies in the form of debt are no longer being held by central banks as they were in the past," he said ^[1].

As a visible expression of this loss of confidence, Dalio cited the strong performance of the gold market: "The market that moved the most last year was gold—significantly more than the technology markets" ^[1].

Markets React Nervously to Trump's Tariff Policy

Despite the positive crypto rhetoric, Trump's fluctuating trade policy significantly burdened Bitcoin markets. The cryptocurrency fell from around $110,000 in early November 2025 to below $90,000 and has been struggling with this level ever since ^[2].

Chris Beauchamp, chief market analyst at IG, wrote: "Cryptocurrencies offered no refuge from the sell-off that swept across global markets in response to Trump's threats" ^[2].

After Trump's speech in Davos, in which he ruled out military force to take over Greenland and announced a "framework for a future agreement," Bitcoin rose from around $87,000 to $90,000 ^[2]. The withdrawal of threatened punitive tariffs against European countries, which Trump announced on Truth Social, led to a rollercoaster ride in Bitcoin's price ^[3].

Over 24 hours, Bitcoin ultimately recorded only a marginal price increase of 0.4 percent ^[3]. The fact that the crypto market did not react more strongly is likely due to unresolved issues in the conflict, such as Greenland's territorial integrity and the future of the EU-U.S. trade agreement ^[3]. The EU Parliament had put work on implementing the Turnberry Agreement on ice ^[2][3].

Cory Klippsten, CEO of Bitcoin financial services provider Swan, explained: "The biggest drag on Bitcoin's price over the past year has been tariffs. That's the drag on risk assets in general" ^[2]. The long/short ratio among Bitcoin investors currently stands balanced at nearly 50 percent on both sides ^[3].