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

Hedge fund Elliott has warned that the Trump administration's support for cryptocurrency has fueled speculation, and this frenzy could cause "serious damage" when prices plummet. An investor letter shows that the $70 billion asset company has targeted the US government's significant enthusiasm for assets with soaring prices but "no substance," as well as politicians who support cryptocurrency.

Elliott wrote that the fund has "never seen such a market"... signs that investors are behaving like a group of sports gamblers in the AI boom and high stock valuations. Cryptocurrency is the "starting point" of the entire market speculation frenzy, not only because its scale has expanded, but also because it is "close to the White House." The "inevitable collapse" of the cryptocurrency bubble "could cause serious damage in ways we cannot predict." Worth noting is that Elliott founder Paul Singer is a long-time Republican donor who donated $56 million to conservative candidates in the 2024 election cycle. (Jinshi)