Hedge fund Elliott Management says the "inevitable collapse" of the crypto bubble "could wreak havoc in ways we cannot yet anticipate," according to an investor letter seen by Financial Times.
The hedge fund led by Paul Singer said "crypto is ground zero" for the speculative surge across all markets, in part due to its "perceived proximity to the White House," FT reports.
Last week, President Donald Trump signed an executive order to explore a strategic digital asset reserve. This week, Trump’s media company launched Truth.fi, a fintech brand that will invest up to $250 million in traditional investment vehicles and “similar cryptocurrencies or crypto-related securities.” That comes in addition to World Liberty Financial, a DeFi protocol that counts Trump as its "chief crypto advocate," as well as the official TRUMP and MELANIA memecoins launched just before Inauguration Day.
Elliott's Singer told the Wall Street Journal in 2023, when bitcoin was trading around $29,000, that cryptocurrencies are "completely lacking in any value."
"There are thousands of cryptocurrencies," Singer said at the time. "That’s why they’re worth zero. Anybody can make one. All they are is nothing with a marketing pitch—literally nothing."
The world's foremost cryptocurrency, bitcoin, has surged over the past year and accelerated around the election of President Trump. Bitcoin traded around $43,000 one year ago, rose to the $70,000 level by November and was around $105,000 as of publication time, according to The Block's BTC price data.
Elliott’s letter also points to the "immense advantage" the U.S. dollar has as the world’s reserve currency and said elected officials who support "marginalising the dollar" was "profoundly dangerous."
More than $170 million was spent to elect 253 pro-crypto candidates last November, and it's been reported that crypto PAC Fairshake has already raised $116 million for the 2026 midterms.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
