Hedge Fund Elliott: The White House is inflating the cryptocurrency bubble, which could cause serious damage

ChainCatcher news, according to Jinshi Data, hedge fund Elliott warns that the Trump administration's support for cryptocurrencies has fueled speculative frenzy, which could cause "serious damage" when prices plummet. An investor letter shows that the $70 billion asset firm has pointed its finger at the U.S. government's significant enthusiasm for assets that have skyrocketed in price but have "no substance," as well as politicians who support cryptocurrencies.

Elliott wrote that the fund has "never seen a market like this," with the AI boom and high stock market valuations being signs that investors are "acting like a bunch of sports gamblers." Cryptocurrencies are the "starting point" of the entire market's speculative frenzy, not only because their scale has expanded but also because they are "close to the White House." The "inevitable collapse" of the cryptocurrency bubble "could cause serious damage in ways we cannot foresee."

It is worth mentioning that Elliott founder Paul Singer is a long-time donor to the Republican Party, having donated $56 million to conservative candidates in the 2024 election cycle.