U.S. President Donald Trump used his platform at the World Economic Forum in Davos to deliver a bullish economic message while simultaneously announcing significant regulatory developments for the cryptocurrency sector. Trump declared that "the economy is booming" and positioned the U.S. as "the economic engine" of the world, stating, "When America booms, the entire world booms."
However, his optimistic remarks starkly contrasted with a brutal sell-off in the crypto market. In the past 24 hours, the digital asset space suffered liquidations exceeding $900 million, according to data from CoinGlass. The vast majority of this—over $802 million—came from long positions, indicating traders betting on price increases were caught off-guard by rapid reversals.
The liquidation wave pushed the total crypto market capitalization down more than 2%, dropping it below the $3 trillion mark. Bitcoin briefly dipped below $88,000 before recovering above that key level. Altcoins experienced deeper losses as leveraged positions unwound aggressively. This volatility continues a fragile trend for the market, which has struggled to find stability since the record liquidations on October 10, 2025, with recent geopolitical tensions around Trump's policies adding to investor anxiety.
Amid this market turmoil, Trump made a pivotal announcement regarding crypto regulation. He revealed that the U.S. Congress is actively working on a bill to establish a regulatory structure for the cryptocurrency market. "Congress is working on crypto market structure regulation. I hope to sign it soon," Trump stated. He framed this legislative effort as part of a strategic competition, emphasizing the need to "prevent China's dominance" in the crypto sector and asserting that "the US will continue to be the capital of crypto."
The President's economic claims were met with a more nuanced reality. While the U.S. economy expanded at an annual rate of about 4.3% in Q3 2025, analysts dispute Trump's assertions that inflation has "stopped," noting persistent price pressures in energy, housing, and food. Hiring and wage growth have slowed compared to 2024, and economists warn that proposed tariffs could exacerbate trade tensions and economic slowdowns.
Trump also commented on the Federal Reserve, stating he would announce the new Fed chairman "very soon" and confirming the appointee would be a man.
