Elliott Warns Of Cryptocurrency Speculation Risks

According to PANews, hedge fund Elliott has issued a warning regarding the U.S. government's support for cryptocurrencies, suggesting it fuels speculative frenzy that could lead to significant disruption if prices collapse. In a letter to investors, the $70 billion company criticized the U.S. government's enthusiasm for assets with soaring prices but lacking substance, as well as politicians backing cryptocurrencies. Elliott stated that the fund has "never seen a market like this," citing the AI boom and high stock market valuations as signs of investors behaving like sports gamblers. Cryptocurrencies are seen as the "starting point" of the market's speculative frenzy, not only due to their growth but also because of their proximity to the White House. The inevitable collapse of the cryptocurrency bubble could cause severe damage in unforeseen ways. Notably, Elliott's founder, Paul Singer, a long-time Republican donor, contributed $56 million to conservative candidates during the 2024 election cycle.