Bessent speaks firmly at Davos: US-EU disagreements escalate, Bitcoin strategic reserves become a new market focus

Trump is about to arrive in Davos, and U.S. Treasury Secretary Scott Bessent has already taken the lead. On January 21, Bessent spoke consecutively on core issues such as Greenland, US-EU relations, US debt market, and Bitcoin strategic reserves at the Davos Forum. His strong language and firm attitude clearly demonstrate the Trump administration’s deep intention to reshape the international financial order. Behind these series of statements lie multiple variables involving global capital flows, safe-haven asset allocation, and opportunities in the crypto market.

Bessent’s Hardline Stance: From Geopolitics to Financial Markets

Escalation of Disputes over Greenland between the US and Europe

Bessent candidly accused some European leaders of making “incendiary remarks” regarding Greenland, describing their attitude as having obvious “resentment.” He further emphasized that Greenland “needs to become part of the United States,” citing the need for US defense strategy—Greenland is crucial for the US missile defense system, and only by becoming US territory can it be effectively defended.

This is not just a territorial dispute but a strategic consideration of security in the Western Hemisphere. Bessent stated that the US cannot outsource national security to allies, reflecting a fundamental adjustment in the Trump administration’s approach to traditional transatlantic relations. The EU has announced an emergency summit in response, and the tension in US-EU relations is unprecedented.

Firm Response to the US Debt Market

A Danish pension fund announced plans to sell US Treasuries, which would normally be routine market activity, but in the current sensitive context, it is interpreted as a signal that European funds may reduce their US asset allocations. Bessent’s response was described as “humiliating”—he said Denmark’s investment in US Treasuries is “as insignificant as Denmark itself,” implying this move has minimal impact on the US financial system.

Behind this statement are two implications: first, the US Treasury is signaling to the market that the attractiveness of US debt remains solid, and institutional funds will not massively shift due to short-term fluctuations or geopolitical disagreements; second, it is a covert pressure on Europe—America has the capacity to handle any shocks in the debt market, and Europe’s countermeasures are extremely limited.

Bitcoin Strategic Reserves: From Law Enforcement Legacy to National Asset

Key Signal of Policy Shift

More notably, Bessent made a heavyweight statement at Davos regarding Bitcoin strategic reserves. According to the latest news, the US Treasury Secretary explicitly stated that the federal government will continue to promote the “Strategic Bitcoin Reserve” plan, incorporating all Bitcoin obtained through criminal or civil asset forfeiture into the national digital asset reserve, rather than liquidating via auctions as in the past.

What does this mean? The first step in government policy is “stop selling,” and this goal has been achieved. In other words, the US government has ceased selling seized Bitcoin and is instead holding it as a long-term strategic asset. Bessent emphasized that this “hold, do not buy or sell” stance aims to treat Bitcoin as a long-term strategic asset, similar to traditional gold or oil reserves.

Certification of Bitcoin as a “Store of Value”

Bessent explicitly defined Bitcoin as a “store of value” asset in an interview, and this statement is no coincidence. As the current US Treasury Secretary, this reflects a shift in mainstream financial perception of crypto assets. Previously, there was widespread debate over the attributes of crypto assets, but Bessent’s statement is expected to break down this cognitive barrier and further reduce institutional concerns about entering the market.

Rising Global Safe-Haven Sentiment and Capital Flow Changes

Market Status and Concerns

Recently, US stocks have retreated, and safe-haven assets like gold have hit record highs. This has raised concerns among some investors about whether capital will withdraw from the US. According to the latest news, amid China’s sluggish economy, large amounts of funds are eager to seek safe-haven outlets. Due to restrictions on cryptocurrency purchases, gold has become the main choice for capital fleeing, and China’s strong demand for gold has been a key driver of its soaring prices.

Bessent’s Market Confidence Booster

Bessent clearly stated that concerns about capital withdrawal from the US are seriously exaggerated. He emphasized that the attractiveness of the US market remains solid, and institutional funds will not shift massively to Europe or other regions due to short-term fluctuations. He also said the US economy is “very hot,” and investment is expected to accelerate this year.

This statement is significant because it aims to stabilize global investor expectations and prevent US-EU disagreements from evolving into systemic shifts in capital flows.

Future Outlook: New Patterns in Geopolitics and Asset Allocation

Based on current signals, the following developments can be anticipated:

• US-EU Disputes May Persist Long-term: The Greenland issue is unlikely to be resolved at Davos. The US’s tough stance indicates this will be a long-term topic in US-EU relations through 2026, potentially affecting geopolitical risk premiums in international capital.
• Structural Changes in US Debt Market: Although Bessent is confident, the trend of European funds reducing US asset allocations may be difficult to fully reverse, exerting long-term pressure on US bond yields.
• Enhanced Status of Crypto Assets: Government recognition of Bitcoin, combined with rising safe-haven sentiment, could attract more institutional funds into the crypto market, especially investors seeking geopolitically neutral assets.
• Intensified Competition Between Gold and Bitcoin: Both are positioned as safe-haven assets, but Bitcoin’s government recognition and scarcity may give it an advantage in long-term competition.

Summary

Bessent’s series of tough statements on the eve of Davos essentially reflect the Trump administration’s profound reshaping of the international financial order. From the geopolitical Greenland dispute, to financial market risks in US debt, to the strategic elevation of crypto assets, these seemingly disparate topics point in the same direction: the US is redefining its role in the global economy, shifting from a passive market participant to an active rule-maker.

For cryptocurrency and risk asset investors, this means both opportunities and challenges. Bitcoin’s recognition as a “store of value” by the government, and the US government’s halt on selling seized Bitcoin, are long-term positive signals. However, escalating US-EU disputes may trigger reallocation of global liquidity, making short-term market volatility inevitable. The key is to understand the logic behind these changes rather than be misled by short-term fluctuations.